Loading ...SPX Decision Time?
Friday’s upside Stock rally was more powerful than I expected and I took smaller profits on my shorts than expected.
A closer look, however, shows that the SPX and other indices are in a tight spot and one of these Forks is going to break down tomorrow. I’m betting the smaller green downside fork will win here based on the price action that can be observed over time on the larger blue Intermediate Cycle fork. Note how price has stair stepped down levels on the blue fork and how these fork lines, which were once support, are now resistance.
The CMF and Slo Sto Oscillators don’t inspire much confidence here either.
Toast. down 22 handles in the premarket
A close below the 50 DMA would be definitive in this case. Don’t think it will happen this week. Likely next week after the FED.