Thursday, August 27, 2015
Can the market rally to new ATHs from here? We'll see. The bulls have their work cut out for them at the moment.
The 5 min chart highlights a double bottom target at 2040. If the market can hit this level, this would back test the lower end of the range of the 5 month range.
This would also put the market near the underside of that longer term trendline on the daily chart.
Lastly, the SPX is in the midst of a death cross (50 < 200 MA). Both are currently at the double bottom target location as well.
So far this bounce is nice but I would treat it cautiously because there is a good chance this could just be a wave (b) bounce of (4).