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

Markets have entered a window for potential short-term trend change, but might very well prove short-lived and not undercut 4500 right away.  8/7-8/9 looks important for a possible turn.  Ultimately, I expect an August decline down to 4350-4400 before SPX gets over 4650, making upside limited.

Recent stalling out in US Equities likely will result in upcoming consolidation.  Yet, until SPX-4500 is broken, it’s tough putting too much faith in a larger correction getting underway just yet without any proof. 

Monday brought about a continued strong lift in Energy which has quietly taken over as the best performing sector over the last month.  Meanwhile, WTI Crude has lifted to highs not seen since April of this year, which lies less than $2 higher.

Overall, this stalling out in Equities looks to be important on a short-term basis only. 

A pullback down to challenge 4560 looks probable over the next 1-3 days, and a break of that level should lead down to last week’s 4528 low. 

However, until the uptrend from late May that intersects SPX-4500 is broken, it remains hard making a strong case for a larger decline.  This has to do with weekly momentum still proving to be q...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)