The August low in SPX was breached decisively this past week. As the 3rd quarter concludes this coming week, we will see if SPX delivers the first red monthly bar since January (Chart 1).
The ongoing subsequent rebound is strong. It likely will craw along the underside of a potential prior wedge as this potential topping process progresses (Chart 2).
SPX is potentially turning this month following a marginal ATH.
Its low in August is 4367.73, which needs to be breached for a credible turn (Chart 1).
The index closed just below its 50-day SMA (Chart 2) after being rejected by the underside of a potential prior EDT (Chart 3). Ideally, that resistance (4486.87) should not be regained to reflect any determination of a turn.
If nested wedges in SPX are present, the next correction is likely swift, taking less than 18 months to complete.
