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Weekly View of SPX and Daily IBB & RUT

We covered the daily chart earlier.  Now for the weekly view, which puts some perspective on the bounce from last week’s losses.  This bounce was always going to happen.  I thought it might drop to at least the second moving average (around 2000) first, but a market that was already getting over sold was ripe when the Paris murders happened.  The relief impulse was palpable as many focused on how bearish Monday’s open could be, after the market had already been very bearish the entire week before.

So today we have the Fed Minutes and some malarkey in the financial media about how they are probably going to raise rates in December but maybe not because after all a couple members were hand wringing about whether the economy can sustain a rate hike and further more blah blah blah.  This idiocy alone should be incrementally reducing confidence in these people but we’ll just watch hard indicators without trying to out guess mass human psychosis, err that is, psychology.

SPX still wears a dome on its head.  The bounce has hit 2080, which we have been projecting.  Now the markets will decide what is next.  Whether bearish resumption or a surprise bull ‘manic up’, we will know soon.

spx weekly chart

As for some items that could be potential seasonal leaders if the market does go bullish, here is the daily IBB getting a lot of attention today for its breakout and the Russell 2000 still dealing with the resistance cluster.

ibb and rut daily charts

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