LOOKING BACK AT the END of JULY, we see the Culmination of a 2 month rally that topped out late July @1992 and headed for a AUG7th low @ 1905.
DO WE HAVE THE SAME THING TO FEAR NEXT WEEK ??
COMPARE the TWO POWER DATA GRAPHS FOR THAT ANSWER.
the top PW graph shows CLEARLY what to EXPECT FROM JULY24-25th HIGH at 1992 heading into AUGUST 1st touching 1916 earlier in the day. And the SPX did bounce OFF a PIVOT LOW @1905 on Aug7th, a total loss of 86pts and dow 800pts
ALL IN JUST 2 WEEKS.
NOW Lets LOOK at the NEW PROJECTION FOR NEXT WEEK- NOTICE THE RED SQUARES for AUG 25 to 27th are showing a similar thing as did July28th, and
the spx did attempt to regain some lost ground to 1985, but could NOT HOLD IT JUST AS THE PD SHOWS lost it the next 4 days that week.
BUT THIS TIME WE ALSO SEE THE SQUARES PUSHING HIGHER NOW into the 27th.
DOES THAT MEAN WE SEE NEW HIGHS OVER SPX 2000?
MAYBE, but we can say we dont expect the mkt to drop , but there can be some give & take just like the time period between July 24th at 1991 and July28th at 1967.
IN OTHER WORDS, the PD SHOWS we SHOULD NOT be fearful of an IMMEDIATE severe sell off. next week, but dont expect this ti go much longer without some selling coming along JUST LIKE IT DID FROM JULY29th to AUG7th, we could also GET A REPEAT sell off from AUG28th to SEPT 4th.
please pardon my long description- but some times the evidence is only clear to the provider unless you are scrupulous enuf to be able to see red squares clearly.
BE AWARE & BE READY