Buzz & Banter
Yesterday we laid out a possible roadmap for the price action today and, so far, it seems to be shaping up that way. At the time we said a retrace back to the 1045-1050 area in the SPX would be logical with that resistance zone turning away prices; the SPX "then falls even harder than the price action of the last two trading days."
This AM we got to 1048.77 on the cash SPX and we have turned away nicely from that resistance level. Though a "re-try" at the 1050 area is possible, the probability is low given the pervasive (and impulsive) pullback we have seen from this AM. Indeed, should prices go through yesterday's lows of 1035 then, according to these studies, the probability is quite high that a pretty swift decline to the 960 area for the remainder of the year would be in order. Until yesterday's lows are taken out, however, there remains an (increasingly small) probability that another test of 1050 is possible. Small indeed, but want you to be aware of it.
So there you have another roadmap against which to watch prices evolve. Hit 'em straight--and please remember, this isn't advice. I am simply sharing what I'm looking at with hopes it adds to the educational experience.
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