SHORT-TERM: COULD PULLBACK TOMORROW, BUT HIGHER HIGH AHEAD
- Most likely red tomorrow.
- More up ahead especially if red tomorrow without higher high first.
The chart below should prove why most likely a red tomorrow: NYMO is way too high, there’s only 1 exception in the chart the next day was green.
Tow charts below are arguing more up ahead. They basically are the law of inertia, a strong push up like we had in the past 2 days seldom fail right away.
INTERMEDIATE-TERM: SPX DOWNSIDE TARGET IS 1,000, THE CORRECTION COULD LAST 1 TO 2 MONTHS
See 08/19 Market Outlook for more details.
SEASONALITY: BEARISH TUESDAY, BULLISH THURSDAY
According to Stock Trader’s Almanac:
- August’s next-to-last trading day, S&P up only twice in last 14 years.
- First trading day in September, S&P up 11 of last 15, back-to-back huge gains 1997 and 1998, up 3.1% and 3.9%.
Also please see 07/29 Market Outlook for day to day August seasonality chart.
ACTIVE BULLISH OUTLOOKS:
ACTIVE BEARISH OUTLOOKS:
SUMMARY OF SIGNALS FOR MY PUBLIC CHART LIST: