SHORT-TERM: MORE ON THE UPSIDE
Two conclusions:
- Could be red tomorrow.
- The rebound isn’t over yet.
I’ve given plenty of reasons to expect a red tomorrow in today’s Trading Signals, may not be convincing enough, so here’s another one: When NYADV MA(5) too high, the next day is red with no exception. The reason I didn’t mention this in today’s Trading Signals is because the chart also argues for more upside ahead (after a small pullback of course).
The chart below is another reason to expect more on the upside, as never was a Major Accumulation Day exactly the market top.
INTERMEDIATE-TERM: CONCEPT ONLY, THE WORSE CASE SPX DOWNSIDE TARGET IS 1,000
See 08/05 Market Outlook for more details.
SEASONALITY: BULLISH MONDAY AND FRIDAY
According to Stock Trader’s Almanac:
- Monday before August expiration, Dow up 11 of last 15.
- August expiration day bullish lately, Dow up 7 in a row 2003 – 2009.
ACTIVE BULLISH OUTLOOKS:
08/04 Market Outlook: Relief rally could be within 3 trading days.
ACTIVE BEARISH OUTLOOKS:
- 08/02 Market Outlook, 08/05 Market Outlook, 08/08 Market Outlook, 08/09 Market Outlook: Rebound, if any, is sell.
SUMMARY OF SIGNALS FOR MY PUBLIC CHART LIST:
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