Friday, August 18, 2017

MTU Weekend Ed. - Correction (8/18/17)

We continue to track the all-time-high in SPX as wave [3], [5] or [C] from its Feb 2016 low. A meaningful high is likely in place. A correction of (at least) the post-election rally is likely in progress.  Bullish alternatives at smaller degrees exist (see below).

On the weekly chart, SPX touched the green base channel line as a result of the current sell-off (Chart 1). A rebound to the gray line is possible/probable, taking into account of the squiggles in Chart 2.

Current dynamic support levels (points for a potential rebound) are 2423, 2345, 2283 and 2218.

Bullish potentials at the two "smallest" degrees are shown in Chart 3 (green 4) and Chart 4 (purple (iv)*).