One thing I really dislike seeing in an move up where I am looking for the high, is a close at resistance on a Friday. That invites a gap up on Monday morning to make a breakaway gap and can demolish even the toughest looking resistance area. That doesn’t appear to be happening this morning, so that’s something for the bears to be cheerful about as they start the week.
I’m going to show the short term pattern setups on NDX and RUT this morning as both are far clearer than SPX here. Could we see failure here? Yes, and a sustained break below Friday’s low at 2020 SPX should mean that the rally is over or at least topping out. Do I have compelling looking targets higher? Yes, so until that Friday intraday low is taken out the short side isn’t looking particularly attractive.
