Monday, August 28, 2023

SPX and COMPQ: Support Still Holding

On Friday, after Jerome Powell came out and said something along the lines of "We're going to keep hammering at the credit markets until housing breaks," bears seemed to take an early lead -- but then their decline stalled short of the key levels and reversed higher for the remainder of the session.  

A week ago, I opined that the decline had formed "three large waves down," and the market has held that low ever since, which does mean that the most bullish possibility cannot yet be eliminated (the most bullish possibility is that the decline was a correction, and that correction is over).  Bears still need at least one more low to turn the decline into a larger impulse down, so the next key downside level has not changed from when I first discussed it on 8/23:

COMPQ has also continued to hold its key zone:

To the upside, the key zone for bulls remains the previously-discussed trend line:

Not much to update beyond that.  Trade safe.

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