Just noticed that the move to 2848 on the SPX last week put in a higher RSI. That's bad news for anyone looking for a final top, because we should see a higher high on the index with a lower RSI -- an important divergence at any significant top.
bad AAPL earns ahead |
So we can instead expect a dive to 2750 on the S&P into Wednesday FOMC, a weakening position from the Fed, and one last moonshot into next week, finishing at a slight new ATH with the August New Moon. A short, sharp 5th wave to new highs, Bollinger Band touches, the upper wedge trendline, and, importantly, divergences on the RSI with both the 2848 and 2872 highs.
2750 is also the perfect .382 retrace of what we can now see was the W3 in the sequence off the April lows.
S&P 500 sharp 5th to the New Moon |
Then we can resume the planned trajectory, start breaking down supports in earnest, as we make our way back to firm support at 1810.