• Try not to get dizzy looking at this week’s and today’s sandbox. There is a lot of stuff on our windshield this week.
• But keep it simple – we either get through this resistance or not. If so, we head towards 4000. If not, we will head towards 3500.
• The only way I know to monitor this is to watch the auction as it develops in real time – it will tell you whether prices are being accepted or rejected in the zones.
• The options / Gamma strikes are unusually compacted this week, so there is not much to glean there except that the Volatility Trigger is at 3850 – and below that, selling pressure and volatility intensify.

As you know, I have been expecting the market to resolve higher since the June 17th low. We have captured some nice, short-term gains on the rally attempts.

I am still ever so incrementally bullish on a retracement north and up to 4000, but willing to change my mind. And the market has been trying to find its footing. 

Nevertheless, the cardinal rule has not changed. Traders and investors should resolve all doubts in favor of the existing trend – which is bearish. Experts I respect are extremely concerned about domestic and world events.

But connecting current events to the market is a fool’s game. The market looks ahead. Whatever is coming out now, regardless of what it is – news, interest rates, and global events – is already baked into the indexes.

Good luck today, and be patient. If we pay attention, the market will tell us what it wants to do.

Watch today’s video for more detail on how I set up the week and built the charts above. I will have the footage polished and out in a few hours.

A.F. Thornton