SHORT TERM: higher open sold, DOW -166
Negative week so far. Gap down opening on Monday eventually took the market to SPX 2699. A last hour rebound, gap up Tuesday, then higher open on Wednesday, took the SPX to 2746 by the first hour of trading. After that, right back down again to 2699. NAZ rallies – the DOW is sold. DOW rallies – the NAZ is sold. In the meantime, Asia has been lower and Europe mostly lower as well.
With the breakdown below SPX 2729 on Monday, the rally (2677-2791) was corrective like the two previous rallies during this uptrend. This suggests the entire uptrend could be a corrective B, or corrective D of a triangle. Noted the triangle configuration on the SPX daily chart today in green. Keep in mind, the E wave of a triangle does not have to drop to the lower trend line. Also, removed the “uptrend” labels, as it does appear the SPX is in an unconfirmed downtrend. More on this over the weekend. Best to your trading!
MEDIUM TERM: downtrend may be underway
LONG TERM: uptrend