The cash S&P500 index reached the minimum target pointed out in this journal last Friday morning. We certainly arrived there quickly! Was the low last Friday and subsequent move higher the expected successful retest of the low? I can't say for sure, can you?
I can tell you that we did not get a technical buy signal on the retest and so that facet of my work remains negative. Note also that we found resistance yesterday at the "red" moving average and the 50% retracement of the most recent decline.
My "gut" says we are going to visit the lows again over the next few days, get a technical "buy" signal and then rally upwards back towards 1500. All of this action, if it were to unfold this way, would be corrective (Elliott Wave Principle) in nature and part of wave "2 or b".
If it doesn't play out this way? No harm done ... I'm flexible. At the very least the weekly chart shows no reason to become a bull at this juncture. I continue to sit on the sidelines waiting for the next "clear" shorting opportunity.
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