Friday, July 24, 2015

SPX 2080ish Next?

SPX 2120 was broken and SPX hasn't traded above 2121 since then. While 2100 offers support from moving averages, I think 2080 +/- looks like a better support area if a downtrend is kicking in. Dow and Russell 2000 are only about 1.5% above their July lows and Nasdaq is 1%+ above key support. If each of those indices drop around 1% or so, SPX should fall close to 20 points, hence 2080ish. At that point, I could see SPX bouncing multiple times around 2075-2105 for a few days before it decides to retest highs or start the journey to SPX 1923, which is a key Fib area I documented last week. I favor the latter but will follow the technicals as they unfold. Good fortune.

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