Friday, August 3, 2018

SPX Update: Still "As Good as It Gets" for Bears

On July 30, I noted that things finally looked like they might start turning in bears' favor, and reiterated that on Wednesday, and we've since made new lows again.  We now appear to have a small impulsive decline from 2848 to 2798, so this suggests we'll see at least one more wave down of at least 50 points.

Adding to that, the most recent low at 2796 has the hallmarks of a b-wave low, which also suggests lower prices when the current c-wave rally completes (I mentioned in our forum yesterday morning that 2831 +/- looked like a good upside target, and we came within about a point of that).  This is thus "as good as it gets" for bears:

In conclusion, the current rally might stretch a little higher, but I would suspect it's close to complete, and that we'll then reverse back toward the 2780ish zone.  If we sustain a breakout over 2849, then all bets are off, of course.  Trade safe.

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