S&P500: Bounce or another V-shaped rally

Big picture wise, off the December 2018 lows the S&P500 has so far only made three waves up: Dec->May, May->Jun, Jun-Jul, now in August correction. Thus either we have a larger a,b,c on our hands of an ongoing irregular Primary-IV wave. Or Primary IV already bottomed in December '18 and we have a 1,2,i,ii set up in place, with wave-ii possible already completed at this week's low. The Bearish alternative is a continued move lower with this week's low only wave-a/1, and now wave-2/b underway, to be followed by a wave-3/c down which can still be part of the wave-ii (!). The floor in the market is now at SPX2825 and the June low. Below the June low takes the nested 1st, 2nd wave option off the table. For now I am looking higher in this current three-wave bounce before the next leg lower. Lack of big call buying and relatively low TICK readings are not yet supporting a larger rally IMHO.

intelligent_investing

Expert and Accurate Financial Market Forecasting
Dr. Arnout ter Schure
President & Founder Intelligent Investing, LLC
Vice President & Co-Founder NorthPost Partners, LP

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

intelligent_investing

Expert and Accurate Financial Market Forecasting
Dr. Arnout ter Schure
President & Founder Intelligent Investing, LLC
Vice President & Co-Founder NorthPost Partners, LP

Also on: