Second day of consolidation

$SPX reached 1,665 today, en route to our target of $1,680's.

Waiting for a reversal, which when it happens it will be impulsive - the turn will be sudden

Consolidation began

The anticipate phase of consolidation upwards began today.

It will last a few days and it may reach as high as 1,575 - 1,585 on $SPX.

We need to now wait for confirmation of the 3rd and impulsive wave down

Stay tuned

We finally got the bounce we have been expecting

A bounce upwards here is normal, as we have pointed out previously, the second wave down was ending.

The bounce may be over today, as $DOW closed in the red, or it may continue for a few days potentially reaching as high as 1,680's on the $SPX.

Until we have clarification of what is going to happen after the FED minutes announcement tomorrow at 2:00pm, we will not be able to tell which is the market's next move.

Both $DOW and $SPX remain under their 50 MA and hence anything can happen tomorrow.

We are oversold for now

The markets are oversold on the hourly and $DOW on the daily as well as of today.

So far I have counted 2 waves down from the top, with the last one ending around 1,650 on $SPX.

We had a very short consolidation period (last Friday for a few hours), and then proceeded lower despite the oversold hourly sentiment - this is bearish and I interpret it as fear sinking in (beyond just technical-driven selling).

Interestingly, our indicators continue to point down and on the hourly we had the start of a new wave down. If in fact a 3rd wave down begun already, then our next target down is around 1,625 or bit lower on $SPX, at which the market will be oversold.

Ultimate target for this down turn is around 1,550 on the $SPX, which happens also to be close to the 200 MA.

But before we get this low, we should have a bounce up of some sort around the 1,625 level.

The fact that we have been dropping from the top without any significant pull-up so far, is an ominous sign (bear market ahead?).

consolidation may occur here

As we predicted, markets turned down reaching 1,658 on the $SPX today, encountering short-term oversold conditions.

We are now in an expected consolidation stage, that may be very shallow, may have already ended or may drive the indices upwards over the next few days. $SPX 1,620 is our next down target following completion of the anticipated consolidation.

Trend is still down

Despite the impressive come back this morning following a FED speech, our indicators suggest that we are still in a down trend.

Tomorrow will be critical, as it will show whether today's up will become a midterm trend, or whether we will resume downwards.

Trend is down

The trend is down on the daily as well as the hourly.