Option Investor
Update
HAVING TROUBLE PRINTING?
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SPX dropped down to the broken downtrend line from last Friday, at 868.50, so if that holds and it rallies back above 882 (some Fib correlation at that level) it could turn into a bullish run to another new high (target around 900). In the meantime the daily chart is leaving us with a potentially bearish reversal signal after tagging its broken uptrend line from March 30th through the April 9th low. This is the same trend line that stopped the rallies on April 22nd and 24th. This is also the 2nd day it has failed to hold above the late-January high near 877 (although we still have 30 minutes for it to close above that level). The continuation of the bearish divergences does not support the idea of a strong rally from here. These factors simply increase the odds we're a lot closer to a decline than a rally but obviously not a given. Manage your risks accordingly.

SPX daily chart:
[Image 1]

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Option Investor will be moving its website back to Denver from Florida this weekend. Because of timing considerations for this move there will be no website or email updates for the Market Monitor on Friday. The desktop version of the Monitor will still be active. Thank you for your understanding in this matter. If all goes well we'll have the web-based version of the MM up and running again on Monday. Wish us luck for the cutover.

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