About a month ago SPX/ES pushed to new all-time highs, suggesting stocks were off to the races. I wasn’t convinced. From our April 29 post:
A move above the Sep highs is technically bullish. So, trend followers will be compelled to go/stay long with the former highs as their stop. Personally, I would be extremely cautious in chasing it, keeping an eye out for rejection and shorting it if/when it drops back through 2940.
We labeled the downside targets and waited to see if the rising wedge would break down. Spoilers…it did.
Now, 7.7% later, we’re presented with a new challenge. ES came within a few points of our 2728 target overnight. Will it get a bounce here or is it susceptible to additional downside?According to our bond charts, there’s more pain to come.
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