My 8/26/19 post noted the SPX could reach a corrective bottom around the 2800 area. This is still possible and possibly even more downside action.
On 9/5/19 the SPX had an obvious breakout above a clear resistance area, the start of a move to new all-time highs? Perhaps, but remember there are four market dimensions; Price, Sentiment, Time, and Momentum. The Time dimension for US stocks is now bearish. Seasonally September to October are bearish months and the supposed breakout occurred at the cusp of the seasonal down trend time.
Additionally, the SPX move down from 7/26/19 to 8/5/19 was impulsive. The subsequent rally looks very much like a corrective pattern. An Elliott wave impulse down - straight line.
Followed by a corrective - crooked line up, implies a new impulse wave down below the termination point of the first impulse down.
Evidence from the Momentum dimension in the form of overbought Stochastic implies a move down could start soon or may have already begun.
Mark
On 9/5/19 the SPX had an obvious breakout above a clear resistance area, the start of a move to new all-time highs? Perhaps, but remember there are four market dimensions; Price, Sentiment, Time, and Momentum. The Time dimension for US stocks is now bearish. Seasonally September to October are bearish months and the supposed breakout occurred at the cusp of the seasonal down trend time.
Additionally, the SPX move down from 7/26/19 to 8/5/19 was impulsive. The subsequent rally looks very much like a corrective pattern. An Elliott wave impulse down - straight line.
Followed by a corrective - crooked line up, implies a new impulse wave down below the termination point of the first impulse down.
Evidence from the Momentum dimension in the form of overbought Stochastic implies a move down could start soon or may have already begun.
Mark