SPX, COMPQ, INDU: The Dirty Dozen

Last update noted that the market had reached resistance "for the eighty-third time" (it was actually the eighty-fourth), and the market reacted by dropping back into the noise zone.

Worth knowing that the more often a price zone is traveled, the weaker support and resistance become in the middle of that zone and the more the edges start to be the only things that matter.  This is now literally the TWELTH time SPX has covered this same price territory in only two months, so most of the middle range buyers and sellers have been cleared, which is why price moves tend to become faster.

The net end result is that we still have to keep the expanded flat potential, which I first mentioned way back on December 8, in mind.

Bigger picture, INDU is still above its key zone, so we can't take any of this too seriously as long as that continues to be the case. Yes, it could always ultimately fail -- but we don't really have anything pointing that way until it actually does.

Near-term, INDU reacted to its last resistance zone, so no huge surprise there:

COMPQ is another one worth watching and where, IF things start breaking, we might have reason to think more things will break.  But as of right now, it also remains above key support:

In conclusion, additional near-term downside is always possible and wouldn't immediately break anything.  Sustained downside might, but given how the last two months have gone, it's probably prudent to let the market lead us to that conclusion, as opposed to imposing it on the market without evidence.  The first bear option remains the expanded flat first discussed two months and a week ago.  Trade safe.