SPX: Watch the Key Trend-line for Bull/Bear Outlook
Despite the Coronavirus still well underway with no signs of letting up, it appears the recent injection of 175B yesterday and another 400B today from China is improving the "sentiment" (for the artificial good) of the broader market. This injection has came under the expense of Gold and Silver (particularly Gold) which has now undergone a mid-cycle correction. That being said, it is quite common for breakdowns to occur in the metals prior to an eventual breakout for manipulators to obtain liquidity. For this reason I always tell people to avoid leverage in the metals as they are incredibly manipulated.
For the SPX, despite failing on the trend-line twice which preceded a sharp decline in the markets, should we close above the trend-line as drawn, it appears the market will want to reach new ATHs once again. A drop below the trend-line in the near-term would indicate a fake break-out and a continuation of a bearish outlook.
At the beginning of the year I noted that shorting the equity market would be incredibly risky as my target of 3700+ by year-end is still intact and still remains regardless of the Coronavirus outlook.
- zSplit
For the SPX, despite failing on the trend-line twice which preceded a sharp decline in the markets, should we close above the trend-line as drawn, it appears the market will want to reach new ATHs once again. A drop below the trend-line in the near-term would indicate a fake break-out and a continuation of a bearish outlook.
At the beginning of the year I noted that shorting the equity market would be incredibly risky as my target of 3700+ by year-end is still intact and still remains regardless of the Coronavirus outlook.
- zSplit
