The NYMO decided to resolve its consolidation downwards and the down cycle continues.
We are still a ways from the turn zone and a long way from the oversold zone.
Price has picked off some down gap targets while opening up some up gap targets for later.
We have passed below the middle keltner band with just a bit of pause and are now playing with the 50 day MA.
There is a gap target right by the 50 MA. So, let's watch and see if this neighborhood gets some kind of reaction.
If the 50 MA doesn't show some support, it is reasonable to say gulp!
The unfinished business of the unresolved benchmark at the last NYMO high of SPX 2958.06 has been resolved. (pea green line)
It is healthy for the market to realign price with breadth.
Note there remains another benchmark way down at SPX 2595.32 that is lurking out there.
That should not be in the cards this deal but maybe a deep fall correction could go there if it doesn't want to wait for the next bear market.
However, clearing out some more of the open gaps clustered between here and the lower keltner band may have reasonable prospects. We shall see.
I am short SPX. I have taken two scales and retain a runner position with a breakeven stop.
Things moved fast after my last post!
I have a setup to short the R2K that is balking due to oversold conditions near a support area.
I am slow as a turtle. So, blitzkrieg moves like this will leave me at the station on some trade ideas.
So, plan is to do nothing at this point but let SPX runner run.