SPX internals are oversold and the futures are looking for a cycle trough:
There is a weekly and monthly pivot cluster at the 4400-4450 level.
With the SPX trading below the pivot cluster, and with upswings getting shorter in duration, the swing dynamics have flipped:
Weekly targets: 4300 - 4450.
Eliminating price noise gives a clearer picture of true swing pattern and trend.
The SPX is in a daily downtrend, but a weekly and monthly uptrend. This favors buying dips.
The weekly trend will change with a drop below 4450:
According to the Daily Swing Pattern indicator, the SPX overcorrected in just three days:
As long as the weekly upswing remains in place, daily bullish reversals should be bought.
The expected rebound brought the SPX to the upside weekly target, where it spent most of the week:
Market Breadth and Pattern indicators are steadily making their way towards the overbought zone which should raise the cautionary flag:
Weekly Seasonality and the SPX/VIX indicator give an even more urgent warning of an imminent change in trend. As of the close on Friday, the SPX finished in an upswing in all three time frames: daily, weekly and monthly.
Weekly targets: 4350 - 4600, Pivot line at 4480.
