This is my most bearish count, with the 2nd wave up finished at 1079.28, followed by another 1-2, one degree smaller. Now in order to label the 2nd wave top any higher the SPX would have to break above the upper channel line. Something that would cause me to rethink the whole wave count.
The Russell finally had its death cross today, with the 20 day MA crossing the 50 day.
The SPX did make a lower low today, without making a higher high, slightly bearish, with the trend neutral until we can break a more important high or low.
Breadth pretty much confirms today was a day of consolidation, ending the day at 1.0053:1, advancers, on low volume, this is something that has never happened after a bottom was just put in a couple of days ago, and why I am still bearish.
Breaking below 1044.50 would confirm the trend is down.
The Head and Shoulder pattern I posted on the chart below is still valid, and looking good. The neckline is about 1062, and a break below there should really get the ball rolling.
The indicators on the above chart are up against trendline resistance with room available to run to the downside now, also there is divergence on the indicators, that is as the SPX made its last high at 1079.28, the indicators could not make a higher high, a sign that momentum is waning for the bulls.
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9:50, I am seeing a pretty good Head and Shoulder pattern developing now. One encouraging thought for the bears, and after the close I will show some charts of it. After we bottomed at 1044.50 the price action has been much different then it was after every correction since the big bottom at 666, this time, is much more corrective compared to all the previous times where we would immediately spike-up in impulsive style waves that did not over lap, coupled with increasing buy volume and breadth.
7:58, There is a big fight going on here, and if the bulls lose control of this last gray bullish fib fan, the next downside target will be around the 1010 level. Then when you match the count to that defeat, it would more then likely be a very sharp and sudden sell-off.
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7:11, We have the start of an impulse wave down, but I would still like to see 1044.50 taken out to confirm the 2nd wave is over. Also a break below 1044.50 would make an a-b-c count down from 1150 less of a possibility.