Tuesday Aug 6, 2024
11 08 CST
My take is that the top of various markets occurred around July 11. As shown above, RSI top andPMO bottom. peaked around that date.
Now both indicators have dropped to the bottom of their respective ranges.
The trendline tracks from teh May low. From the July 11 high, the market had a Wave 1 drop to 5400. It then made a move up in Wave 2 to just the underside of the trendline, see blue blob,
and it failed, remember that!A waterfall Wave 3 down then occurred, to the surprise of all on business cable TV.
This is a 1985 minute chart or just over three hours. This is not the time to add short positions nor the time to go long.
If you have been long, exiting on a bounce up would be a great strategy. If you have no position, my position, wait for RSI and PMO to recover to place a ladder of orders in short funds.
Expect many 'experts' urging 'investors' to buy in to this short sell off, like the lady on Fox Business, most have never seen an extended sell off. It is coming.
This is still summer. Seasonally we get a rally in to late August, then a low in October. Let's let the market recover here before adding short positions.
The Inverse of the SPX chart above is the SH chart or bear SPX, which is just the inverse.
Here RSI and PMO are maxed out so we need to wait for them to come back to earth to add positions.
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