Would it be a case of one step forward two steps back in a generally declining bias market - I think the coast is not yet clear , we havent seen large extremes to suggest a bottom is in place plus the issues that caused the decline remain unresolved. Technical Traders seem to believe we are looking at a very volatile and bearish week this week, so lets see where they land.
Any rebound today could be IMO a nice opportunity to take some chips off the table, if the market is kind enough to give that breathing space.
Weekly S&P 500 Chart
This Weekly S&P 500 chart highlights what we believe is the most likely immediate price trend related to the October 2018 price decline. If a downside price move does initiate as we expect because of the August 19 breakdown inflection point, we believe the S&P will target immediate support above $2400. If you’ve followed any of our research, you already understand we believe the move dynamic economies on the planet are uniquely situated to actually benefit from this downside price event. Therefore, we must understand that a “price exploration event”, like this, is a mechanism for investors to seek out true value levels for global assets. All major price corrections are, in essence, a process of seeking out price levels where investors believe “true value” exists.
