Wed 9/8. The big move is coming.

Although I'm not personally trading the long side due to the potential downside in S2EW, the System is still on an SPX buy signal with hourly support at 1083 and daily support just below that at the 20dSMA. I am maintaining my projections and counts from the weekend. The uptrend could very well be over, since we have 3 waves up from 1040 on SPX in the 1090-1110 resistance area with USD bouncing off its target price projection low and VIX bouncing from below its lower BB20. However, when I look at the various market sectors, I see financials in bad shape with others above key support levels and USD, VIX and SPX all looking like they could support one more counter-trend move. So, for now, I'm expecting SPX to hold 1080-1090 which allows up to a 1% drop Wednesday before rising one more time over the next few days. I would actually love SPX to fall back to 1080-1084 with dynamic RSI breaking the low seen at 1040.88 to confirm the first rise to 1105 as an ABC meaning the current drop would be an X wave with one more ABC (wave Y) to follow.

In any case, I expect the next rise to be much weaker than the last one highly likely falling short of 1130. To answer 1 comment about 1130+ being a triangle violation, I'm not a stickler or die-hard on patterns but it is commonly believed that an E wave rise above the C wave (and definitely the A wave) is a violation of a sideways triangle pattern and that is true by the book. However, other indices and sectors show ascending triangles and there's always another way to count things. So, it is possible some markets like Materials and Dow test or even break their August highs in wedges while SPX falls a little short or tags along to 1130+. Having said all that, I expect and project SPX to fall short. Utilities have already made new highs but look like they are finishing an EDT if they haven't already finished. Tech and financials look sick. If SPX drops to 1080-1085 Wednesday, C=A*.618 at 1120-1125 which is where my cycles, trend lines and pattern all converge in the next 1-2 weeks, but things can fall apart anytime in my triangle count which has traveled plenty far. Although I hold IT short positions in my retirement account and my System has done well, my personal plan is to get more aggressive given the likely downside by either loading up short at SPX 1115-1125 with a stop above 1135 or load up short at 1090-1100 if SPX drops back down near 1065 and bounces. Of course, I will tweak those price levels as things unfold. The 1220-->1041 drop only took 4 weeks and the next drop to the low 900s will likely not take much longer than that...maybe 6-8 weeks tops and I still think the Sep 21st Fed meeting might be the catalyst to finally  break 1040 or 1011. That's only 2 weeks away meaning we should see 9xx by end of month.

To answer another comment, I don't look at foreign indices very often and never the Indian markets (not that I have anything against them...I have several friends from India including my tennis partner and I visited India for 2 weeks several years ago). For another comment about my vertical chart lines, they are all related to short-term cycles I noticed, not anything permanent and not anything I'd rely on heavily. Good luck.