MTU Weekend Ed - Short Term Update (8/7/15)

Stocks indeed pulled back ahead of a potential "real" upswing (see Monthly Outlook Update (7/31/15). A number of indexes have even breached their July lows (Chart 1), eying the February lows as the next meaningful support. Whether the July low in SP500 can hold remains to be seen.    However, a dip below the July low will likely offer a more solid footing for the next upswing (Chart 2).