If we look back to the June 8 post, I discussed and charted the possibility of a 8th wave point below the 6th wave low of May on SPX. It took its time but we got a low under 2067 on 6/29 and 6/30. These even-numbered waves of a Reverse Point Wave (Welles Wilder) setup often rebound sharply upwards and can even make substantial new highs.
I was short an inverted SPX 2x leveraged fund, SPXU, last week into the low yesterday when I flatted. You'll see on the current chart the Andrews bisect of the whole rising triangle from March 11 to June 22. The bisect and 2067 target of the 8th point and the 200 day moving average all meet near yesterday and today's lows!
There is a Scottish method potential buy tonight which would be validated by an overnight rise so that tomorrow's NYSE session SPX low was above 2070. There are other ways to validate the buy, but this is the most direct and quickest.
Failing this and breaking below the 200 dma, the bisect line, and remaining under 2067 would reinforce the short signals currently in force.
I remain long the TSY 30 year strips fund EDV and was pleased to see Jeffrey Grundlach as a buyer and Gary Shilling still tall in the saddle.