SPX, COMPQ Updates

After the close on Friday, Moody's downgraded the USA's credit rating from AAA to "junk" status (okay, maybe that's an exaggeration), causing futures to drop a bit.  This isn't the first time a major agency has downgraded US debt (I recall this happening in 2011 as well) -- "the US debt trajectory is unsustainable" is hardly breaking news to anyone.

But it will be interesting to see if this ends up being just a hiccup (probably), or the start of a more significant turn.  Note the chart below:

COMPQ is still below its next resistance zone:

Near term -- IF this is a bull wave -- SPX has a couple ways to approach it:

The chart below pairs with the near-term chart above:

In conclusion, this will be an interesting test of bulls' resolve here.  Trade safe.