For only the second time in 2019 I'm issuing a Yellow Alert for US stocks. The last Yellow alert was in early May near the start of the May to June decline.
Yellow alert means caution. Hold off on new long positions. This is not a recommendation to sell or short. The long term Elliott wave count for the SPX bull market since 2009 does not appear complete - meaning the action since the all -time high on 7/26/19 is most likely just a correction.
As noted in my 9/8/19 post the decline from 7/26/19 to 8/5/19 appeared to be an Elliott wave impulse which implies it could be just the first wave down of a larger developing decline. The decline from the high made on 9/9/19 has been a very clear five waves followed by a very clear three waves up. Today the SPX closed at the high of the day, usually when this happens there's more upside on the next trading day. Caution, any upside could be very limited as there's chart and Fib resistance just above today's high.
Minimum downside target remains SPX 2800. Next FOMC announcement is 9/18/19 - please see The Swingers comments about FOMC days in my 9/8/19 post.
Mark
Yellow alert means caution. Hold off on new long positions. This is not a recommendation to sell or short. The long term Elliott wave count for the SPX bull market since 2009 does not appear complete - meaning the action since the all -time high on 7/26/19 is most likely just a correction.
As noted in my 9/8/19 post the decline from 7/26/19 to 8/5/19 appeared to be an Elliott wave impulse which implies it could be just the first wave down of a larger developing decline. The decline from the high made on 9/9/19 has been a very clear five waves followed by a very clear three waves up. Today the SPX closed at the high of the day, usually when this happens there's more upside on the next trading day. Caution, any upside could be very limited as there's chart and Fib resistance just above today's high.
Minimum downside target remains SPX 2800. Next FOMC announcement is 9/18/19 - please see The Swingers comments about FOMC days in my 9/8/19 post.
Mark