SPX: Follow Up of the Short Term EWP
Yesterday SPX had a choppy session to the down side. Absence of impulsive action but maybe it was not an uneventful day.
Last Friday I posted a potential impulsive up leg off September 5 with a "thrust" out of a triangle wave (4).
If this count is correct then the possibility of a high is large if today there is follow through to the down side or if a rebound attempt fails and establishes a lower high.
If price breaches the trend line support odds of some type of a top at 1474.51 will substantially increase. (Some type of a top = the corrective up leg off the June 4 low is completed)
Daily RSI and Stochastic are displaying weakness signals:
The weakness of the McClellan Oscillator is more intense; here we have a bearish cross of its Stochastic and quite a pronounced drop of the oscillator, despite yesterday's shallow SPX pullback.
Hence maybe Friday's Shooting Star has marked a peak.
If the up leg from the June 4 low is done, even though it looks like science fiction that this market will ever drop, SPX should begin a corrective phase to the down side which should observe some proportionality both time wise and with the size that price has traveled measured by the Fibonacci retracements. Just as a reminder the 0.382 retracement is at 1395.
Today I will monitor AAPL since yesterday's Hanging Man + a potential exhaustion gap can be a reasonable candidate of a having established the top of the impulsive up leg from the May 18 low.