Yesterday we said it was a reversal day
Today the down trend was confirmed
All is going according to plan, indicating the Aug 2nd high as significant.
In a provocative way, we had suggested that the April 11 high was a multi-year high, only to be followed by an extension.
Extensions are 5 wave structures: 1,541 - 1,597 - 1,581 - 1,675 - 1,560 - 1,709
We expect this down trend to extend about 150-200 points on the $SPX, reaching the 200 SMA or lower. It is calculated based on the 60 point drop from 1,700 (August 8) to 1,640 (August 21), which we call wave-1 of C, based on which we calculate a target of 1,500 on $SPX.
If our modeling is correct, this short term leg down will reach 1,580. At that lever it will bounce a bit, we will get oversold on RSI and then one more down rapid drop to our lowest target.
No comments:
Post a Comment