Now that the market engineers have rigged the $SPX above the 4500 mark, you see them holding it above that level, this morning. It should be obvious to everyone that this 4500 level is significant, and it's the level to watch. When that level breaks it will be sold, while any future breakouts above this level will undoubtedly be bought.
The $SPX should continue to hold up in the same range it's been trading in for the past 5 months. Should be pretty boring, and as they say, never try to sell (short) a dull market.
$SPX - continues to trade into a bearish ending diagonal triangle pattern. The spring is getting wound pretty tight, but this can certainly continue for a couple more weeks. If we see the market dumped ahead of Sept. Options Expiration - and most investors are already being prepared for a Sept. pullback - then we could see a perfect 50% retracement, of the previous 6 month rally, with a pullback target at the 200 day ma @ 4150.
Short term targets: Possible little shakeout to the 50 day ma - just bellow 4400 - followed by a low volume holiday rally, back to the top of the pattern (4595 - another significant psychological target), followed by a mini-flash crash - once the lower triangle line breaks, back to the 4150 level. Of course timelines are nearly impossible to predict, but the fake news is already taking about a Sept. pullback.
$SPX - DCS chart -
This is such a complicated and thinly traded market, it's a lot of work to keep a handle on individual sectors, let alone commodities.
More on that, in the next update.
Take care, AA
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