For the past few years, the SPX has been the main index, as far as determining which side (bull or bear) has the overall control.
3 days ago, the SPX broke an established support level at 6796. What do I mean by established? It was the low daily close since December 22 (over 3 months) and after making it the first time it generated a successful retest of it with a low daily close at 6798 on February 5, from which it made a new all-time high thereafter.
The 6796 level got broken on Friday (with a close 6740) and yesterday, the index closed at 6795. Retests of breaks of support or resistance almost always happen, as such, if the index closes today convincingly above the 6796/6798 level, it can be thought that the sell signal given has been negated (though with Trump, nothing is ever totally clear).
Nonetheless, if the index closes below 6796 today and continues lower and closes below 6740 any time thereafter, the computers and algorithms will become sellers is a big way, with the 6585 level as the short-term target. Right now, today's intraweek high has been 6845 and the index at 2:40 pm (80 minutes to the close) is trading at 6808.
We will see what happens, if at the end of the day (the daily close), will show whether this rally was for real, or just day trading manipulation.
3 days ago, the SPX broke an established support level at 6796. What do I mean by established? It was the low daily close since December 22 (over 3 months) and after making it the first time it generated a successful retest of it with a low daily close at 6798 on February 5, from which it made a new all-time high thereafter.
The 6796 level got broken on Friday (with a close 6740) and yesterday, the index closed at 6795. Retests of breaks of support or resistance almost always happen, as such, if the index closes today convincingly above the 6796/6798 level, it can be thought that the sell signal given has been negated (though with Trump, nothing is ever totally clear).
Nonetheless, if the index closes below 6796 today and continues lower and closes below 6740 any time thereafter, the computers and algorithms will become sellers is a big way, with the 6585 level as the short-term target. Right now, today's intraweek high has been 6845 and the index at 2:40 pm (80 minutes to the close) is trading at 6808.
We will see what happens, if at the end of the day (the daily close), will show whether this rally was for real, or just day trading manipulation.
Last edited:
