Friday’s break, and this morning’s follow through in the pre-market, allow for the thought that the rally may be finished, but the evidence isn’t there yet. More work needs to be done.
Cycles- The shortest cycles hit their projection and the market broke. However, the SPX only reached the low end of the 13 week cycle projection range. And both the 6 month and 10-12 month cycles still project to xxxx.
So I’m on the lookout for xxxxx xxxxxx xxxx xxxx after this pullback phase is complete. It might make a new high. xxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxx prime time for the 6 month cycle high. If it comes before that, so be it, but at the moment there’s no sign yet that this is it. Non subscribers click here to access.
Third Rail Channels – The meltup channel finally broke last week, but there are multiple uptrend lines just below xxxxxx xxxxxxxxx xxxxxx xxx that should be support. The sharpest channel line starts the week at xxxx and rises to xxxx on Friday. They need to break to get anything significant going on the downside. I’d look for at least a bounce from one of those trendlines, and either a double top or lower high before a downtrend starts in earnest. If xxxx breaks, the next target for a pivot low would be xxxx. Non subscribers click here to access.
That resistance cluster xxxx-xxxx is still there. Obviously, they would need to clear that to extend the rally. If they do, the next target would be xxxx. Non subscribers click here to access.
Long Term Weekly Chart – The market pulled back after breaching previously noted key trend resistance at xxxx to end the week well below that level. As a result longer term xxx signals xxxx xxxx xxxxx . There’s a chance that this is the beginning of a xxxx xxxxxxx xxxxxx, but there’s more xxxxx xxxxxxxxx xxxxx xxxxx xxxxxx. Non subscribers click here to access.
Monthly Chart – If the market stalls and rolls over here to end August below xxxx it would set up a xxxxx xxxxxx for September onward. Failing to clear xxxx at the end of August would allow for a drop to trend support around xxxx. Non subscribers click here to access.
Cycle Screening Measures – Friday’s pullback represents only the potential for a turn. None of the xxxxxx xxxxxx have xxxxxxxxx yet. A down day Monday would xxxxx the process, however. Barring that, the patterns would remain very similar to March – April 2020. Non subscribers click here to access.
These reports are not investment advice. They are for informational purposes, intended for an audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance.