Friday, May 31, 2024

SPX and INDU: First Target Captured, Typos Notwithstanding

Ugh.  Last update contained a typo, end if theirs won theeng I HAYT, its typsoes.  Hopefully, the context of said typo made it obvious to readers what it was supposed to be:

So, SPX captured its first target, and seems set to bounce this morning, but it remains to be seen if that's going to be it.  Bulls now need to get back above the red line to keep bears at bay.

INDU has now gone so deep that (see chart -- and TYPO, with "second" supposed to be "section"):

I can't find my sarcastic COMPQ chart at the moment but suffice to say it's still well above any areas of concern, so perhaps INDU was a triangle and COMPQ (as I wrote and suspected) was not.

In conclusion, on the one hand, it still appears reasonable to think SPX might have one more high lurking out there, but on the other hand, we are trying to nail down what is potentially the last micro high before a larger correction, and sometimes that's almost impossible to do -- so if the downtrend continues, caution becomes warranted for bulls.  Trade safe.

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