Assuming the SPX continues to put more daylight between itself and the Meridian, we expect these updates will trickle to a halt. For the moment the market has roughly a 7% cushion for the balance of July after backtesting support in June. Although we typically don’t rely heavily on trend lines for perspective, considering the pivotal history of rejection and support at the Meridian – this one we closely follow.
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Despite hitting the relief valve in May, the SPX is loosely following the last time it broke through the Meridian in May 1995.