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I hope everyone has had a good week. There are a few things I can discuss this weekend.
On Wednesday, we discussed the S&P 500’s breach of a trend line, and from there it went a little further on Thursday, then ran back up to check back in on that trend line today in a bear flag, and then sold off again the rest of the day:
It is a positive development to see some additional selling, but we’re also within merely parallel rails and until we go even further to the downside, we can’t completely rule out a bullish structure. I of course don’t think the bull flag is as likely—it seems more sensible to expect a deeper retracement (at a minimum) after this summer’s relentless rally—if not an outright change in trend, but sometimes crazy things can get even crazier, so it’s still an important feature to watch until we can rule it out.
Let’s review counts and targets for the S&P, the RUT, and the NDX, and we’ll look at the technicals on the VIX.
How I am inclined to count these for the time being is as follows:
All right, that’s what I’ve got for now. I hope everyone has a fine weekend, and we’ll see if there’s more blood in the streets for us next week. Please do take care, and I look forward to seeing you next week.