Saturday, August 15, 2015

MTU Weekend Ed. - Upswing, sooner? or later? (8/14/15 close)

The pullback to 2052 in SPX this past week may be sufficient to "offer a more solid footing for the next upswing" (see Short Term Update(8/7/15)).  Another dip below the July low remains more ideal, but it is not required (Chart 1). Let's see what the market delivers next week.

The rebound has brought indexes to both resistance and somewhat overbought levels (Chart 2). From a short-term bullish perspective,the cash market may gap above resistance at the open. From a short-term bearish perspective, another decline will complete the triangles and EDTs highlighted in Chart 2.