Sunday Prep 8/01 - $SPY/$ES Things can't go straight up forever
Everything still looking healthy heading into August. Support for me will be the 20d/monthly pivot 4350ish area, followed by the 50d/annual pivot 4275ish area. 4500 is the first area I see as possible resistance.
Let the monthly chart keep you objective about where we are in the bigger picture. Things can’t go straight up forever. Don’t think for a second that the S&P can somehow skirt the rules of physics. As long as the fed keeps printing money the music will keep playing. But once the music stops, we need to know how to spot the trouble. That is why I use higher timeframes to see when things start to change. You can see I have set an alert for the break of July’s lows. That doesn’t mean things are broken, but it’s definitely something to take note of if/when that happens. The other thing I watch for is lower highs and lower lows on the weekly chart.
Let the monthly chart keep you objective about where we are in the bigger picture. Things can’t go straight up forever. Don’t think for a second that the S&P can somehow skirt the rules of physics. As long as the fed keeps printing money the music will keep playing. But once the music stops, we need to know how to spot the trouble. That is why I use higher timeframes to see when things start to change. You can see I have set an alert for the break of July’s lows. That doesn’t mean things are broken, but it’s definitely something to take note of if/when that happens. The other thing I watch for is lower highs and lower lows on the weekly chart.
