Does the rise from the March 2020 low look like a blow-off to you?

The lower red line connects the lows of the bull market from 2009. The parallel to this line stopped the decline at the June low.

The blue upper channel line connects the two bull market tops. It parallels the 2009 low. Note this line comes through at the current month’s low. Finally, note that the current price bar is at its high, implying we are in a reversal-- the proverbial summer rally.

The market will seduce the bulls to think the market can go to a new all-time high after rebounding from the ideal level from which it has rebounded.

Bears, on the other hand, will be contemplating a failed rally that leads to a drop to the lower red trend line…or worse if that is broken.

This 412 SPY level is important. Why? Because 412 squares mid-June…the low.

It is also straight across and opposite mid-September which is 90 days/degrees from mid-June.

It should be a September to remember. This is also within the idea of the Shmita Cycle from yesterday’s report with the Jewish New Year being September.

90 degrees up from 362/363 low is 403. This ties to the 4020 level of lore on the SPX.

If the SPY clears the aforesaid 412 region with authority it opens the door to the next 90-degree decrement up from 403 which is 423.

As I wrote yesterday, the next pullback holds the cards.

So far the SPX/SPY turned their daily swing charts down yesterday following a turn-up of their monthlies.

The turndown is in keeping with the “kickback”, knee-jerk pullback we expected.

The market rallied impressively but then rolled over just as impressively.

The jury is out, but the odds are that we get at least two consecutive lower daily lows prior to Monday’s highs being eclipsed on a trending basis.

At the same time, the market is in the window of a cluster of Fibonacci turn dates stretching into mid-August.

If the market continues to rally from the one-day turndown, it suggests FOMO frenzy into an August secondary high.