The sharp move down in US stock indices from late April to late May (to point 1 on the chart) took ~150 points or handles off the SPX. Since then a large broadening or expanding eight point formation has developed until ~August 9. Then a resumption of the primary trend downwards until last week. And lastly a retracement upwards. The rule for these retracements is that they will top out at or about the Andrew's median bisect of the last leg which in this case is about where the 200 day moving average is at this time.
If this works out, I would expect a fairly quick drop of 150 SPX handles which from 1115 would mean 950 on SPX in October.
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