I ended my post yesterday noting that Friday’s are generally up days and that the recovery into the close would likely continue. We did see that continuation today. SPX was below the lower end of the expected move yesterday, and from there it rallied over 1 standard deviation and was briefly green for the week early in the day today.

For the week, SPX closed down about 20 points but considering where we were on Thursday, I would say that is a win for the bulls.

The daily chart had red candles every single day this week, our first streak of 5 in a row since mid August. Despite yesterday and today being up days, their candles are still red because the close of the candle is lower than the open. The only streak broken today was that the candle today did not make a new low.

Over my weekend video last week, and in prior posts, I’ve talked about how SPX just ends up no where week to week. Despite having a lot of chop and hitting the expected move on both sides over the past few weeks, SPX is sitting at the same level it was at in August. For 6+ weeks now, SPX has been sitting around the same price.

The red line below runs from August 4th to today, nearly 2 months. While it is closer to the high end of the range these past few months, it really shows how much of a magnet this level has been.

SPX has had nearly a 300 point range since then, but ultimately has ended up no where.

It’s been choppy and there have been some big swings, but for right now the direction is clear – there is no direction.

When SPX accumulates like this at a specific price for weeks at a time, we all know what happens. There is a big move coming soon. Where it ends up is a surprise, but that’s the fun of trading.

I’ll have more over the weekend as usual!

Stay tuned!