Technical Strategy Video:

The video in this report is only accessible to members
The video in this report is only accessible to members

Key Takeaways

  • Pullback in US Equities, along with Cryptocurrencies, and Treasury yields getting close to initial support and expect reversal higher to begin Monday-Wednesday of next week. One can’t rule out one final flush for Equities, but should be right to buy weakness in SPX at 4418-4465 area if reached.
  • Value Line Geo.Avg has reached the lowest levels since March and shows how broad-based this selling has been for the market, much more than a 5% SPX decline suggests
  • Sentiment has turned bearish, and some minor evidence of a pick-up in Downside volume vs Upside. This is an initial sign of markets getting close to support.

Friday’s pullback tested Wednesday’s lows before bouncing into the close. However, wave structure still could allow for a final pullback to 4418-SPX 4435-65 S&P Futures before a bottom is in. The real key will be watching the structure of the first move off the lows for evidence of impulsive Elliott-wave structure and broad-based participation. For now, US equities look close, but can’t rule out some “final” weakness into Monday/Tuesday before a bounce gets underway.

The video in this report is only accessible to members
Despite SPX and NDX being down just 5%, the broad...

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