Wednesday, August 12, 2015
SPX Update: Potential of a Bearish Pattern Failure Looms
Since last update, the market turned at the second noted bear inflection zone, and this has cast a shadow on the "usual" expectation of the market reaching 2115. It's possible that the pattern failed to generate the usual outcome, which can be a signal of an exceptionally weak market -- but due to the complexities of the noise zone, we can't entirely write off a trip to 2115 just yet.
We're just going to focus on the big picture chart today, which shows the potential of a bearish pattern failure (black "bear ii"). This pattern was expected to be run north of 2114, but stalled in last update's second noted "bear c of (2)" inflection zone.
In conclusion, at the moment, there's very little to suggest that bulls are still running the show. The preferred counts remain intermediate bearish, although there are options for complex corrections that give bulls a near-term edge. Right now, though, the pattern is bearish until proven otherwise. Trade safe.
Posted by PretzelLogic at 3:45 AM