Monday, January 8, 2024

SPX, NYA, COMPQ, INDU: Shock the Monkey

Since capturing its June "bull count" target, SPX has remained in a near-term downtrend.  Let's look at a few charts.

This jives with the very long term trend line that we've been watching since July:

COMPQ has also stalled at its inflection zone:

As has NYA:

For bears, the one monkey in the works is probably INDU:

In conclusion, multiple markets have reached and reacted to their inflection zones, so score one for inflection zones, if nothing else.  It's too early to say if these reactions will be short-lived or will turn into a full-on resumption of the bear market, but that possibility is at least on the table (and fun to consider, since I suspect it would catch almost everyone by surprise).  Even the more bullish case could see a meaningful correction develop, though there are no concrete targets for such a move yet.  Trade safe.

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