sp'weekly7 - bearish outlook
Summary
So... the fourth red weekly candle has turned blue... and it does clarify that last Wednesday was at least a short term floor. Whether it is a key low for the rest of the year... that is the big issue now.
The important 1970s
For me, I'm drawing the line.. literally around sp'1970. There are a fair number of aspects of resistance in the 1960s, and if we start putting in any daily closes in the 1970s, then the bigger bearish outlooks should get dropped.
sp'daily5b - bears last stand
I suppose the market could really try to annoy the most amount of traders with a brief break into the 1970/80s, only to swiftly reverse, but really, that would be so close to new historic highs, and arguably automatically rule out any hope of breaking <1820.
Looking ahead
The latest CPI is due, along with the EIA oil report.
*next QE is Thursday
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Update from Mr Permabull
Interestingly, Oscar's short term target zone is my 'last line' of sp'1970. I'd have to say to Oscar... ANY failure to break and hold over 1970 keeps a deeply bearish November on the menu.
A break back under sp'1900.. where there are old broken aspects of support - not least the 200dma.. would open up a swift crashy move to the sp'1650s.
Goodnight from London