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Trend table status

Trend

SP-500

R2000

COMPX

Primary

Up 7/31/20

?- 3/31/20

Up 5/29/20

Intermediate

?+ 9/25/20

Up 8/21/20

?+ 9/18/20

Sub-Intermediate

?- 9/15/20

Dn 9/11/20

Dn 9/21/20

Short term

? 9/4/20

? 8/18/20

? 9/4/20


Don Worden of Worden Brothers (makers of Telechart software) used to keep a trend table before his health issues got in the way. I always found it useful. Mine is slightly different. Hopefully helpful. Up? or Dn? means loss of momentum. ? by itself means trend is neutral. ?+ or ?- means trend is neutral with bias of up(+) or down (-)

Wednesday, August 5, 2020

Last downside gap closed 8/5

Mission accomplished!  SPX managed to close the 2/24 gap down today.  Now what?


SPX pulled back a little bit when it hit the edge of this downside gap back in July.  I don't know if it was enough to alleviate the usual selling when a gap of this magnitude is closed or not.  We will have to see what transpires in the days ahead.  The only remaining objective would be to forge a new high in SPX.  Time will tell if that happens.


Neither the red/green count nor the short term indicator is in an overbought condition yet.  There is more room to run if the market wants to. 

I don't think SPX would get much past the old high should it get there on this go around.  Overall, the market is pretty thin now and in need of a pullback.  I guess we continue to play along with the bulls until we get a reason not to.  We just have to watch to see if there is some kind of negative reaction after closing that big downside gap.

Bob

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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.