Despite the non-stop geopolitical jittery and the traditionally weak summer seasonality for stocks, the bull market charged ahead and is showing no signs of abating at the moment. After the brief two-week (8/11/2017-8/25/2017) and less than 3% correction, S&P 500 cash index bottomed on August 21st.
The stock market is currently in a holding pattern after a nine-day selloff via an A-B-C wave structure that produced a temporary high on August 8th. The current 4-year cycle that started in February 2016 has been nothing but amazingly strong. During the nine-day selloff
Topping is a process. Finally the topping process produced a temporary high on August 8th. We had originally projected the S&P 500 index top to be around 2478 in advance, the final top was made @2490. From the June 9th outside reversal top @2446, it took two months
Third time is the charm. The market flashed outside reversal days three time, once on June 9th, once on July 27th, and finally on August 8th. On those outside reversal days, the market made a fresh new high, then promptly sold off to close below the previous day’s low.
We were watching the S&P 500 2478 target very closely. It made a high @ 2477.62 on the 10th day on 07/20/2017 in the 4th daily cycle. It was also in the 13th week in the weekly cycle, that is well within the top timing band in terms of the weekly cycle. It’s too soon to tell if this 2477.62 high
