Bounce above 4114 in SPX gives reason for optimism that lows might be in place Array ( [cookie] => 2a48e8-f3cdc2-6703b3-879602-deeeba [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 1 [subscriber] => 0 [role] => fsi_pro [visitor_id] => 567896 [reason] => [method] => ) 1
Key Takeaways
- Friday’s strength in SPX and QQQ has broken initial resistance, giving reasons for optimism that a more meaningful low could be in place.
- QQQ bounce makes both legs of decline equal in price and time into late May.
- Ethereum has fallen out of favor vs Bitcoin, and BTCUSD should be favored.
Changes in Trend finally have occurred in SPX and QQQ. Don’t look now, but SPX and QQQ have finally recouped areas which were thought to be important as resistance to the downtrend from late March. SPX has exceeded 4114 while QQQ has also exceeded peaks from mid-May. Technically these are initial signs of constructive progress for indices which have broken downtrends, giving reasons for optimism towards a larger rally. While more is needed to create the initial five-wave rally off the intra-day lows from 5/20 to have real conviction from an Elliott standpoint, (and QQQ will need to recoup 318), there’s enough in place to think markets likely can continue higher, and that my recent analysis of a final pullback in June very well could be wrong. Bottom line, a long bias up to SPX 4315 looks proper, with 3982 being critical support. See daily SPX charts below that show Friday’s breakout, which looks important.
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