SPX Daily TA Neutral Bullish

11 Tem 2022

SPX Daily neutral with a bullish bias. Recommended ratio: 52% SPX, 48% Cash. *June CPI report is scheduled for release at 830am on 07/13 and the consensus estimate is 8.8%, if the number comes in higher than that (which many pundits are predicting) then a market sell-off is to be expected. The Euro continues to bleed as it approaches parity with USD for the first time in 20 years as USD and RUB both edge higher. Oil, Gold, Cryptos, Treasuries and Equities are all down as global inflation numbers keep coming in higher; the VIX is also higher. UK Prime Minister Boris Johnson resigned; Sri Lanka's economy is currently collapsing due to bankruptcy as their nation endures food and fuel shortages; Iran appears to be pushing forward with uranium enrichment while strengthening Yemeni ties - making Israel, UAE and Saudi Arabia become increasingly fearful and potentially willing to collaborate defensively; Russia is gradually expanding through the Donbas region (with Donetsk being one of the last strongholds to prevent annexation of the Eastern Oblast) while Lithuania enters the fray by blocking trade/transit between Russia and Kaliningrad - Putin also recently stated that the offensive against Ukraine has barely begun; and lastly the situation between China and Taiwan appears to be escalating month to month while mainland China is still dealing with 'Zero-Covid' and recent civil unrest from Chinese bank clients who have had their assets frozen. That said, the bearish catalysts keep piling up as financial markets continue looking for a bottom; so at this point in time it's reasonable to say that financial markets are still at the whim of the Federal Reserve, and because the Fed isn't done moving to a 'restrictive monetary policy' it's therefore reasonable to assume that there is more potential downside. However, it's prudent to remain vigilant because of one question, at what point have financial markets already priced in a recession?* Price is currently testing the uptrend line from 06/16 at ~$3850 after being rejected by the lower trendline of the descending channel from August 2021 at ~$3925 for a second time in a month. Volume remains Moderate and is currently on track to break a five day streak of buyer dominance if it can close today's session in the red; according to Volume Profile, Price is also currently facing resistance at the third largest supply/demand zone on the chart. Parabolic SAR flips bearish at $3725, this margin is neutral at the moment. RSI is currently trending down at 46 after being rejected by 52.68 resistance for the second time in a month; the next support is at 38. Stochastic is currently crossing over bearish at 91 as it risks falling out of the 'bullish autobahn zone'; the next support is at 76. MACD remains bullish and is currently testing the uptrend line from March 2020 at ~-$35 as resistance while also still technically testing -44 resistance; if MACD is rejected at the uptrend line and then falls back below -44, this would be very bearish. ADX is beginning to form a soft trough at 19 as Price is seeing some recent selling pressure, this is mildly bearish. If Price is able to bounce off of the uptrend line from 06/16 at ~$3850 then it will likely retest the lower trendline of the descending channel from August 2021 at $3938 minor resistance. However, if Price breaks down out of the uptrend line from 06/16 at ~$3850, then it will likely retest $3707 minor support. Mental Stop Loss: (one close below) $3815.