Short Term Trading Week Starting: 05 August, page-65

To avoid confusion let me add that the congestion and resistance above SPX 3000 is on the one hand a thing unto itself – but also a thing easily tampered with by exogenous forces like what we saw in the tariff business from the US administration, the Yuan action and the US Treasury designation yesterday. If there were ever a time for negative headlines to cause the most havoc, it was just after a 39 session period of increasing prices. It’s probably not unreasonable to think that trade war operators would take full advantage of the situation. The CBOE SKEW of course grew steadily during that 39 session period even as it stayed near the historical averages and as such is of some practical use. As for the weekly support resistance profile we now have an even more prominent area of support at SPX 2850 but note that this is about price in a vacuum and without extra news headlines. 2800 has even more support now with 2890 coming in at mid-week resistance. This will of course change rapidly if we see more headlines. Participants are jacked up on adrenalin and you can’t trust a creature that is in fight or flight mode with rent money. That said, 2800 and 2850 are now more supportive than yesterday