Technical Strategy Video:

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The video in this report is only accessible to members

Key Takeaways

  • Thursday’s reversal keeps SPX range-bound within a ~200-point range for most of this week.  Difficult to expect upside follow-through until 4450 is exceeded
  • China decline looks to have final flush into February which should present attractive buying opportunity coinciding with cycles bottoming and turning higher into Summer
  • Apple post-market surge getting close to important near-term resistance at 167-8

The choppiness of this week has proven to be a source of frustration for bulls and bears alike.  SPX Futures, as shown below, have been caught in a volatile 200-point range as part of the ongoing downtrend from mid-January.  With two days to go in the month of January, this month stands a realistic possibility of finishing lower by 8% or greater.  In the short run, there are increasing reasons to expect a low should be in place soon, as early as next week.  However, the wave structure along with lack of DeMark exhaustion still creates a window for a final test into the first week of February.   Bottom line, dips should be used to buy at 4180-4200, while any daily close above 4450 would also be proof that this decline has come to completio...

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