Just before 10:00pm E.T.
It’s difficult to make too much of a pre-holiday trading session, but what happened today was not good. $SPX now moving inside a Bull Flag which by it’s name implies bullishness. However, until $SPX breaks out of the top of the pattern there’s a chance the Bull Flag could morph into a down trending channel, but that won’t happen for a while. For now it’s a Bull Flag and so as such should resolve to the upside. More troubling, at least for me, is that the 20,20 Sto did get a bearish cross today. This happened in late August as $SPX was moving within a Bull Flag at that time. As soon as $SPX broke out of the Bull Flag, then the 2o, 20 Sto had a bullish cross and the rally resumed for a couple more weeks. Then in late September there was another bearish cross of the 20,20 and that one marked the September top. Key for me now will be whether or not $SPX continues to move within the Bull Flag or breaks out one way or the other. Still watching $SPX 1411 as a key level of support but who knows if we’ll even get there.
Enjoy the holiday and GL in the shortened week ahead.
