SPX Daily cautiously bearish. Recommended ratio: 15% SPX, 85% Cash.
*BOUNCE WATCH. Equities and Cryptos continue to sell off in favor of DXY and US Treasuries as Russia halts the Nordstream natural gas pipeline indefinitely (renewing fears of a brutal European winter energy crisis). Key Upcoming Dates: 10th GDPNow US Q3 GDP Estimate at 830am EST 09/07; 6th Beige Book at 2pm EST 09/07; August CPI at 830am EST 09/13; The Merge (Ethereum) at 8am EST 09/14; FOMC meeting 09/20-09/21 (Statement Released at 2pm EST on 09/21).*
Price is currently trending down at ~$3908 as it risks losing $3938 minor support; the next support is the lower trendline of the descending channel from August 2021 at ~$3875. Volume is currently Moderate (high) and is on track to favor sellers for a second consecutive session if it closes today in the red; if this happens then sellers will have dominated six of the last seven sessions. Parabolic SAR flips bullish at $4065, this margin is mildly bullish at the moment. RSI is currently trending sideways at 35 after being rejected by the uptrend line from 01/27/22 as resistance at 38 resistance, the next support is the uptrend line from August 2015 at ~31. Stochastic remains neutral and continues to trend sideways at max bottom for what is now seven consecutive sessions. MACD remains bearish and is currently trending down at -36 with no signs of trough formation, the next support is at -44. ADX continues to trend sideways at 24 for a twelfth consecutive session as Price continues to see selling pressure, this is neutral at the moment.
If Price is able to bounce here then it will have to turn $3938 minor resistance back to support before it can continue higher to retest the 50 MA as resistance at $4k psychological resistance. However, if Price continues to break down here, it will likely retest the lower trendline of the descending channel from August 2021 at ~$3875 as support. Mental Stop Loss: (two consecutive closes above) $3938.
*BOUNCE WATCH. Equities and Cryptos continue to sell off in favor of DXY and US Treasuries as Russia halts the Nordstream natural gas pipeline indefinitely (renewing fears of a brutal European winter energy crisis). Key Upcoming Dates: 10th GDPNow US Q3 GDP Estimate at 830am EST 09/07; 6th Beige Book at 2pm EST 09/07; August CPI at 830am EST 09/13; The Merge (Ethereum) at 8am EST 09/14; FOMC meeting 09/20-09/21 (Statement Released at 2pm EST on 09/21).*
Price is currently trending down at ~$3908 as it risks losing $3938 minor support; the next support is the lower trendline of the descending channel from August 2021 at ~$3875. Volume is currently Moderate (high) and is on track to favor sellers for a second consecutive session if it closes today in the red; if this happens then sellers will have dominated six of the last seven sessions. Parabolic SAR flips bullish at $4065, this margin is mildly bullish at the moment. RSI is currently trending sideways at 35 after being rejected by the uptrend line from 01/27/22 as resistance at 38 resistance, the next support is the uptrend line from August 2015 at ~31. Stochastic remains neutral and continues to trend sideways at max bottom for what is now seven consecutive sessions. MACD remains bearish and is currently trending down at -36 with no signs of trough formation, the next support is at -44. ADX continues to trend sideways at 24 for a twelfth consecutive session as Price continues to see selling pressure, this is neutral at the moment.
If Price is able to bounce here then it will have to turn $3938 minor resistance back to support before it can continue higher to retest the 50 MA as resistance at $4k psychological resistance. However, if Price continues to break down here, it will likely retest the lower trendline of the descending channel from August 2021 at ~$3875 as support. Mental Stop Loss: (two consecutive closes above) $3938.