Monday 31 August 2015

Increasingly bearish

With a net monthly decline of -131pts (6.3%) at sp'1972, US equity indexes are increasingly bearish. Regardless of any continued bounce into mid September (even as high as the 2050/70 zone), there looks to be high probability that the Aug' low was not a key multi-month low.



Suffice to say, August settled with a very significant net decline of -131pts (6.3%) @ 1972, with an intra month low of 1867.

Price momentum continues to swing toward the equity bears at an accelerated rate. We've not seen price momentum this negative since June 2009.

The next 3-5 weeks could prove to be even wilder than the latter half of August.

Best case for the equity bears?


The low sp'1700s look viable in October, where they are multiple aspects of support.