We will probably bounce around here

SPX - glimmers of hope

Zoom out and you will realize SPX has done very little over the past months. The index has traded inside a wide range, but there is no new big trend. The crowd has managed getting excited at turning points, which has been wrong as the SPX has reversed, both ways. At June lows the CTAs were pressing downside momentum hard and everybody was discounting the big break down. We reversed violently and two months later we had the inverse set-up where CTAs pushed upside momentum and everything felt awesome. This reversed as well. Note that there is a short term trend line right around these levels. It is probably time for a bounce somewhere around here.