Yesterday’s close was ugly, exceeding the bottom of our SPX downside target range by 2.49 points. It looked like a nice bounce at 1381 — the .786 of the 1576-666 crash from 2007-2009. Then, perhaps aided by AAPL, the market faltered and closed at the low.
We’ve had a little follow through this morning, but so far prices have firmed above the 1370.58 May 2011 high — a level I have thought important to hold for the bullish case to remain (somewhat) intact. And, remember, they need it to remain intact.
This market continues to push the boundaries, selling off nearly as far as it can without breaking the last of the plausible upside patterns — the rising white channel.
While we got in a tad early, we remain long from 1381 yesterday, and should see a nice rebound in the coming week if our analog continues to hold. I’ll post some charts, along with key levels and indicators, below.
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