Once the NDX filled the gap the likelihood rested with a center tine retest within Andrew’s Pitchfork – this began with Tuesday’s close and continued throughout yesterday. One of the technical nuances previously discussed was the effect on the broader markets when this transpired; this discussion lead to the SPX.
The SPX has been rather strong – technically – given the NDX’s inability to break topside and be the first to give up a substantial down day. If the market is to take the bearish train out of this consolidation, it will have to happen with all four sisters, not just one. Otherwise, the weakest will help be supported by the stronger – as anything in life.
To give truth to the overall strength all one has to do in look at the intra-day chart of the SPX and realize it hasn’t even filled the gap from late April. 1,300 is the number to keep your eye on.
Have a Great Day!