Irrespective of yesterday’s green close, not a thing has changed in the equity markets over the last few weeks. The key levels mentioned weeks ago continue to act as formidable resistance and the longer-term charts still indicate more downside over time IMO. Shorter-term, we still have the recent bearish rising wedge breakdown on the 60 min SPY/SPX charts and yesterday’s move higher did nothing to put that in jeopardy as prices are still well below the bottom of the wedge. In fact, the $SPX closed right on the key 1430 yesterday which is the 4th attempt, and failure, to surmount and hold above that level in the last 5 consecutive trading sessions. The $COMPQ closed comfortably below the key 3030-3040 level AAPL still lags significantly, clinging to critical support and with a mountain of supply (resistance) overhead. Now, with all that being said, if those key levels (SPX 1430-1440, COMPQ 3030-3040, AAPL 596) are clearly taken out, then I will begin reducing my current short exposure as previously discussed. Until then, resistance remains resistance and the overall technical posture looks more bearish than bullish IMO.
