SPX Short-Term Technical Review
There is no change of what I have discussed in my last weekend up date.
As a reminder:
From the June 4 low price is unfolding a complex counter trend Triple Zig Zag.
Due to the corrective look of both the last up leg off the August 2 higher low and the current down leg off the August 21 peak, in my opinion odds are very large that the Triple Zig Zag is not completed yet. Therefore there should be one more wave (C) up.
For the immediate time frame, in my opinion, price is involved in a corrective pullback that could unfold a Zig Zag (abc), hence I am expecting a wave (c) down that could aim at the rising trend line in force since the June 4 low.
The potential H&S has not been shaped hence the possible bottom of the current corrective pattern should be raised to the 0.618 retracement & TL in the area of 1382.
If yesterday's Shooting Star has established the top of the assumed wave (b), the wave (c) down has the equality extension target at 1387.53.
So this is my view based on the price structure.
If price is involved in a "bullish" Zig Zag down it should be completed by Friday (Jackson Hole Bernanke`s speech), in the mean time Mr. Draghi has cancelled his attendance/speech scheduled for Saturday, which is quite odd!!!!!!
The following Monday the US market is closed and on September 6 we will have the ECB Meeting. Given that Mr. Draghi will not attend Jackson Hole the market may spend more time before triggering the next directional move, hence instead of a Zig Zag price could unfold a Flat or a Triangle.
The internal structure strongly suggest that the EWP off the June 4 low is not completed yet but for the immediate time frame we are at bay from the price reaction to next Friday Bernanke speech.