Although we did not have a qualified break of the Beta-X trendline on Thursday, we did on Friday. We also dipped below TDST support (see chart of the daily cash SP500) but that was NOT a qualified break. That is, we can say that the cash SP500 has so far held support.
So how about that qualified break of the Beta- X trendline? Recall that nullifying the importance of the line is a two-step process. Step two requires confirmation of the qualified break – which will NOT happen without a lower low on Monday. On top of that the RSI continues to hold the zone reserved for bull market support (38-42). Additionally, the Composite and Derivative Oscillator values are threatening to form bullish divergence with the RSI.
Conclusion? Another positive day on Monday could mean that at least a temporary low is in place and that a retest of the May high would not be unexpected. I will take a look at the weekly chart tomorrow to put the daily action into context.
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