The market broke out of the trendlines I drew on the chart today and it also managed to break the 1136-1139 support, so the next levels to watch are 1122 and 1114. If those levels do not hold then this wave will go for 1101 and essentially meet my speculative target when the TA was originally tested earlier in the week. Looking at the chart I see an obvious bearish H&S but if the market reverses hard on Monday it will be setting up a potential inverse bullish H&S so we'll see what the market wants to do Monday. Currently, the market is getting oversold and sentiment is very bearish so it has the ingredients for another yet violent rally. So should the market gap down Monday, it will be a buy near the resistance levels I posted and they can be used as stops. If there is capitulation for this wave on Monday, I expect the next bullish wave to meet the TA again earlier next week. The TA is currently at 1157..
Also, per my post last week the TA system is up +21.4% since July 28th vs -14.8% for the SP500. I am adding indicators to watch to better the system.. as it is, the results speak for themselves.
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