Back while most others were still wondering whether the markets had indeed bottomed, Zenolytics was looking ahead to this moment by issuing the upside target that the S&P 500 would naturally gravitate to at 2910.
The high for today in the S&P was 2905, which qualifies as a hit of our upside target for this move off of Monday's bottom.
Already, the market is reacting to this generational point of resistance with over 30 years of promoting chaos across financial markets by reversing off of the highs over the past couple of hours. What does this mean? For this week it means everything.
When markets are paying attention to geometric points of resistance they tell investors by reacting through an expansion in volatility. Expansions in volatility include reversals off of these points that create ugly reversal patterns in the market.
As a result of today's revelation by the market that it is indeed paying attention to this resistance point, the probability of either today or tomorrow being a high for this week increases exponentially.
Generally, this is a terrible place to be taking on long exposure. If anything, it is a point where profits should be taken on names like AMD, which hit our price target discussed a month ago today.
It's beginning to seem as though this week and quite probably next week will be a wash for bulls, while being advantageous for the bearish camp. Zenolytics continues to see June as being highly favorable to the bulls with what should be a substantial rally taking place during the last week of June to end Q2.
Between now and the last week of Q2, expect confusion, dissuasion and befuddlement to reign.
