The long term cycle chart of the SPX illustrates beautifully just how critical this level is, and what it would mean if broken.
Cycle screening measures weakened sharply on Wednesday in further confirmation of the 13 week cycle down phase.
The more a trading range is crossed, the thinner it becomes. Usually the wild swings across the range don’t mean much. Here’s why this time may be different.
Cycle screening measures weakened enough yesterday to suggest that the pullback will at least get a little sticky. But what about beyond that?
Cycle screening measures were weaker but maintained a bullish bias.
Cycle screening measures were stronger on Friday. The aggregate measure popped but stayed below last week’s peak.
The market cleared minor resistance on Friday and set a new 4 week cycle projection in line with the 13 week cycle projection.
Cycle screening measures were weaker on Thursday but not weak enough to signal that trend change is imminent.