SPX: “Just Right!”… for now

The NFP report was considered just right by Goldilocks. Not too hot (that’s for sure), and not too cold. But is it cool enough to roll the Fed over on October 30th? “Probably”, say da CME boyz.

cme group

Anyway, SPX is so predictably bouncing from the July/August cluster of lows (support). As noted in a recent NFTRH update on 10/2…

The next key test would be the SMA 200, currently trending up at 2835.97. That generally coincides with a cluster of lows from August.

But does this look like a nice chart to you? Me neither. Of course, it’s the equity component of the Good Ship Lollipop so, unlike with gold or other assets that have to sing for their supper this one has special and manipulative interests wishing for it to take out resistance at 2955. We’ll see. Momentum has been draining since the spring, and that includes the marginal new high in July.

This is it bears. Take the damn ball, dribble it, show off a little. Regain your composure and for once chase those bulls around the playground and dispense wedgies with extreme precision. Or else that may well be your fate if SPX does not hold below resistance.

spx

Subscribe to NFTRH Premium (monthly at USD $35.00 or a discounted yearly at USD $365.00) for an in-depth weekly market report, interim market updates and NFTRH+ chart and trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar and get even more by joining our free eLetter. Follow via Twitter @NFTRHgt or StockTwits.