Eyes on the prize

The US market appears to have secured a short term double floor of sp'1867. Regardless of upside into September, renewed severe weakness seems due, as 1867 simply doesn't make enough sense as a key retracement of the giant wave from Oct'2011.


sp'weekly8

sp'monthly3b

Summary

*I'm tired..having been 'all out' on these pages since last Wednesday... this really should be brief.
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Suffice to say.. I think we have a high probability of a secondary collapse wave in late Sept/Oct' to the low sp'1700s... before a mid term floor is put in.

Such renewed weakness should offer a far better setup for the equity bears, as the key monthly cycles are now broken. Shorting such a bounce should be more reliable.. and a far safer trade.
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Update from Oscar

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Looking ahead

Thursday data: weekly jobs, GDP, Pending home sales

*It will be day'1 of the Jackson Hole meetup.. and no doubt clown finance TV will be giving it blanket coverage.
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Goodnight from London