It was another bloodbath for bulls on Friday with SPX decisively breaking down through the 50 DMA. It is certainly quite a bearish move, which opens the door for testing the next major support around 5378, the 100 DMA. If that cannot hold, then we will quickly see a retesting of the recent low around 5100ish.
But I'm still not yet convinced that we will see such a drastic plunge so fast. Rather I think there is a good chance we will see a reflective rally next week towards the 50 DMA, maybe following the test of the 5378 support first?
Having said that, be prepared for a rather bearish Sep and Oct, potentially even extending into Nov/Dev, depending how the election goes. There are a lot of risks out there at the moment!
No comments:
Post a Comment