Last week we cautioned about the dangers of complacency and suggested that odds favor shorting rallies. The uninterrupted four-day advance during the shortened holiday week provides a perfect opportunity to test this hypothesis. To wit: the SPX failed at the upside weekly target, and daily market breadth reached overbought levels. Should the SPX remain true to its cyclicality, it is likely to follow this path:

There was not much noteworthy movement among the other asset classes we follow, as all of them remained confined within their weekly targets. Therefore, we’ll keep this article short and will conclude with an update of the SPX 2020 targets:

For  10Y Treasury, GOLD, OIL, BTC and G5 weekly targets and Buy/Sell pivots, check the TV page which gets updated on Monday.

*Please note that the signals are provided for informational purposes only. They are in effect as of the close on Friday and may change as soon as the markets re-open.

Charts, signals, targets and data courtesy of OddsTrader, CIT for TradingView and NinjaTrader 8

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