SPX Attempts A Multi-Month Breakdown: Weekend Wrap Up
In yesterdays newsletter which was entitled “SPX is basing for a breakout” I talked about how the week of up and down ping pong between 4300 and 4200 was basing to setup a breakout. Today, we certainly got that breakout after the loss of 4200, and it was down.
It is hard to draw massive conclusions based on a Friday, month-end close, but from a purely price action perspective there is nothing bullish about today’s close. 1) It broke down a 10 month triangle pattern at 4200 2) Bulls had every chance and then some to sustain a rally off that 4200 level, putting in two 100+ point squeezes off the level last week plus plenty of smaller ones.
One thing is for sure, with FOMC next week, there is going to be massive, likely bi-directional moves. Here is what I’m looking for and why I favor more downside initially