Across the last few years I have periodically highlighted the giant monthly Elder Impulse 'rainbow' chart for the sp'500. With the decline into the 2030s and lower..., the monthly candle for the sp'500 has turned an outright bearish red, and bodes for increasing downward pressure in the coming weeks.. and possibly months.
As I noted just a few days ago, we have a rather clear rounded top on the sp'500, which is following the earlier break in the Transports.. and more recently, the Dow.
Regardless of any bounce next week/early September, further severe downside looks due. The Sept' candle looks set to test the Oct' low in the low 1800s.. which just a few days ago was unthinkable to many.
This video is doing the rounds, and I think it should wrap up the week...
Goodnight from London
*the weekend update will be on the US weekly indexes