SPX, INDU, COMPQ, GOLD: Don't Hatch Your Chickens Before They're Counted

First up: the forums are back up.  Note that if you have trouble there, then you may need to clear your browser cache.

So the main thing that's happened since last update is: "nothing."  The market is still in basically the same place.  But that's not insignificant here.  Because it means the downward momentum has stalled for the time being -- after reaching targets in some markets and nearly reaching targets in others.  As long-time readers know, the areas near target zones represent inflection zones.  

SPX illustrates the next steps for bulls... and a test of upper red looks slightly better than 50% likely at this moment.  Then if bulls can breakout there, it could be back to the black lines... and maybe back up to new highs.  So bears probably shouldn't count their chickens just yet.

COMPQ is still below its first key support, but hasn't declared which way it wants to go yet and could still whipsaw:

INDU is in a similar boat to SPX, with the added benefit of having had futures capture its target:

Finally, Gold just did an interesting test of a trend line that's been on this chart for a while -- and so far, that held as support.

In conclusion, Monday's update's conclusion still hold:

The question at the moment is whether Trump's tweet is going to be enough to stick save this thing here -- and "here" happens to be at or near first targets, so that's not out of the question.  The first positive sign for bulls would be sustained trade north of ~6700, and ideally a breakout over the upper red boundary on the SPX chart.  The "positive" sign for bears would be SPX giving back everything futures just gained and COMPQ sustaining trade south of Friday's low.  The COMPQ chart suggests that if that occurs, we could see the selling continue, possibly leading the market another 5-10% lower, if not more.

Trade safe.