In an earlier observation I said “If the S&P 500™ traveled above the 2600 area I would then re-evaluate,” whether or not I still thought the current bounce was either, just that, “a bounce” before a possible resumption of the downward progression. Or, as is now being touted incessantly across the mainstream business/financial media – “The worst is over, buy, buy, buy!” So here’s my thoughts…
My thoughts of it all just being a bounce (a far more powerful one than I thought possible originally, I will admit) has not yet changed, for as it has been progressing it’s looking more to my technical eye to be just that.
Here’s what I’m now watching for further clues. To wit:
Again, although we are above the 2600 level it still fits the bounce interpretation. It could actually run even higher (i.e., High 2700’s) and still fit in technically, however, I think looking for some type of running-out-of-steam within that area actually fits more closely into the “looking for clues” genre that are noteworthy. I notated the above chart with “anywhere in here” zone.
Should the run stop somewhere in there and suddenly fall back with some sort of followthrough back towards the lower levels is what I’m focusing on as to continue holding my original view.
As always, we shall see.
© 2019 Mark St.Cyr