One Brief Correction to a Technical Observation

I’ve had this important trend line below us as a focus of my attention lately, and I realized that I made a mistake on its placement only just now. This sometime happens if I inadvertently drag something by accident.

I thought I had the trend line pinned (using magnets) to the July low (green arrow), but I had not. Pinning it properly, we can see that we actually did press through it today after all:

SPX

So, it’s not clear to me what this can mean. It’s best to gap through support like this. As you can see at the other September touches, pressing through it in the session resulted in a reversal.

That said, we may also pin it to the June and September lows (instead of the June and July lows), and if we do, we’re at support now, and a gap down would break the support:

SPX

The takeaway: we still need lower prices to help to confirm that this has broken and a gap here would be best for that.


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