US equities look set for further weakness into the daily/monthly close. It has been a hell of a month for the equity bears, with the giant monthly cycles offering the first sign of an intermediate correction (of the Oct'2011 wave). Meanwhile, Oil is holding powerful gains of 7.4% in the $48s.
*note the bollinger bands on the hourly cycle which have now contracted. If you assume 1993 is indeed a short term top.. the bears should be able to manage 1945/30 zone within the next few days.. BEFORE the monthly jobs data.
With grey skies in London (for what seems like 15 of the last 18 days)... I'm not in the best of moods.
As August comes to a close... equity bears have seen the best action in four years. I continue to have hope that once we're past the next FOMC (Sept 17'th).. the market will resume lower.. with a FULL washout into early/mid October.
Best case remains the low 1700s.. but I realise that seems awfully difficult.. even after last week.
*I remain on the sidelines.. with eyes on AAPL. I want a long entry <110... for now..its the waiting game.
back at the close... unless things get a little exciting with a break under the morning low of sp'1965.