SPX S&P 500 Daily Chart; Sideways Symmetrical Triangle; Descending Triangle

US markets are closed for the Independence day holiday tomorrow. Happy July 4th to all!. The bulls keep running higher supported by the Federal Reserve and other global central bankers. The central bankers are the market. President Trump proclaims that he wants a larger fiscal stimulus than the democrats. All the politicians are big spenders nowadays and why not? The Fed can keep printing money forever. The good coronavirus (COVID-19) vaccine news boosts stocks while the bad news is ignored. MRNA is down -4.4% during the week as the vaccine trial may be delayed so instead traders focus on Pfizer's news. PFE pops almost +8% at the casino this week.

The SPX has not back kissed the 50-day MA at the 3003 palindrome or the 100-day MA at 2917 since their breakouts in April and May so touches will be needed going forward. This behavior verifies the bullish market euphoria. Dip-buyers are so anxious to buy, buy, buy, that they will not let price come down; the slightest pullback is bot. The put/calls remain low signaling an ongoing complacency that will need rectified. Do not trust this market. The institutions are distributing their shares to Joe Retail, the bagholdin' sucka. For a four-day rally, the volume is unimpressive not even close to the sell days over the last couple weeks. Nonetheless, traders and investors are singing Oh Happy Days as they buy stocks without a care in the world. In the days or few weeks ahead, perhaps Americans will be talking about Black Monday or Black Tuesday instead of Black Lives Matter.

The blue sideways symmetrical triangle is in play. Price breaks out above the top trend line yesterday. Monday and Tuesday are key days for the stock market since they will determine if price continues higher or fails. Watch that HOD at 3166. Bulls are going to feel confident if the 3166 is taken out to the upside. The vertical sides of the blue triangle are 250 and 300 points. Thus, the breakout from 3100 targets 3350-3400. However, the jury is out until price overtakes the 3166 and then the 3240-3250 level.

Sideways symmetrical triangles can be tricky. What often happens is the fake-out move one-half to two-thirds of the way through the triangle. Price will breakout (or breakdown) from the triangle causing the bulls (or bears) to cheer, however, price typically returns inside the triangle and then exits out in the opposite direction. Thus, early next week will have to play out. If price returns inside the triangle, you better rent a bear suit quickly since the stock market is likely going to fall out the bottom side of the triangle. A breakdown from 3050 will target 2750-2800.

The orange descending triangle was previously mentioned. Price is breaking out above which will nullify the pattern. If price falls early next week, the descending triangle will remain in play and with sides at 200 and 250 points, and the baseline at 3000, the downside target is the same at 2750-2800 if the 3000 level ruptures. The sideways triangles can break either way but the descending triangle is only a bearish pattern. Also, watch to see if the triangles stretch out sideways since this often happens in trading. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Monday Morning, 7/6/20, at 4:50 PM EST: The S&P 500 begins the week at 3130. That HOD on Friday at 3166 is important. S&P futures are up +36. Weeellll doggies, look at that. If futures hold the next few hours, the SPX will begin at 3166 testing that key level right off the get-go. VIX 27.666. Gold 1777.