Dow Jones Industrial Average: +-17.24 or 0.16% at 10433.71
S&P 500 Index: -0.59 or 0.05% at 1105.65
NASDAQ Composite Index: -6.83 or 0.31% at 21691.18
NYSE Internals: 1392 Advance. 1633 Decline.
Over a week has passed and the SPX has not moved. Could it be consolidation for another move higher? Or are we in a topping formation?
As my bullish counts suggested, I was looking for higher highs somewhere between 1122-1160. But I was expecting the up move to be more impulsive. While we did have a big up day yesterday, the market lost steam after it made highs in the morning, and there were a lot of negative divergences.
After studying the daily charts some more, another bearish count has emerged. The sideways motion for nearly two weeks now looks a lot like the topping formation we had in early-mid June of this year.
The market is not closing at it's highs or lows, and most of the candle sticks are like Doji's. Just like they were in June.
The pattern is also displaying a megaphone reversal pattern. Last time, in early July, the market failed to break it's support line, but still managed to correct 9%. If we can break the support like this time, we may have a deeper correction.
US Dollar was flat. Crude Oil was down and Gold was also flat. VIX was also down and most of the financials stocks led to the downside.
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