Market Update for Monday, August 21st, 2023

Good afternoon, traders.

After losing the primary channel I discussed here, the S&P 500 has produced a small bear flag well under the 50-day SMA:


If the bear flag is genuine, it is possible for it to break down and for us to see lower prices. On the other hand, not all bear flags break down, and it’s possible that this is also a trappy structure.

I will briefly review my general thesis here, and then go on to show how this might be counted:

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Let’s see if the bulls can make a stand here and retest the 50-day at a minimum. Let’s see what this little bear flag does. I hope my basic argument here is more or less clear (sorry if I’ve confused anyone). I hope everyone has a fine evening and I look forward to seeing you tomorrow. And please ask if you have any questions.

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