It is good to be doing the analysis and Briefing after a great summer. This weekend’s Briefing is a little longer than I like, but I felt it important to bring everyone up to date on what is occurring in the Stock Indices in multiple timeframes.
As you will see from the Briefing, the longer term trend is up. That must be respected. However, the structure of that trend is very weak and weakening. Unless that changes, we have to be aware of the potential for some type of countertrend move developing. The S&P (SPY) may give us the first indication that a move to the downside may be in the offing. It appears, at least in the short-term, a head and shoulder top has formed. That also is confirmed by the short term extremes from the Profile chart. It is important to remember. A head and shoulders patter is not confirmed until it is over. Therefore, the support and resistance areas outlined in the Briefing will give us a high probability of one event over another.
Remember, the longer term trend is up. It must be respected, but we can be aware that it is potentially weakening and some type of countertrend move can occur.