although it’s still way too early to tell if yesterday’s primary scenario (4 hour SPY chart) will play out, it is somewhat encouraging to see the markets reverse pretty sharply at the top of the resistance zone posted yesterday, especially in spite of the blatant stock market cheerleading on bubble TV today. it’s truly amazing how giddy and bullish they get after one half-decent oversold bounce off support like we experienced yesterday.
again, lots of work to be done going forward on either to bullish or bearish case. i still favor the primary scenario posted on the 4 hr SPY chart yesterday but could easily see the alternative scenario playing out, especially since the QQQ/$NDX has considerable more upside potential while still keeping the bearish longer-term scenario intact. charts below are include yesterday’s SPY daily & 4 hour periods, along with today’s updated daily & 4 hr charts followed by a 4 hour chart showing two likely scenarios for the QQQ/$NDX.
