Both indices have completed 5 waves down from their recent all time highs. This can be seen in the following charts. An upward bounce has already began and we need to give the markets some time to let it unfold. An A-B-C upward corrective pattern is expected to unfold, pushing SPX towards 1800 and DOW towards 16050.
The current form of the index prices is making us believe that more downside is to be expected. After the upward bounce ends, we should expect a downward move towards 1740-50 for SPX and 15600 for DOW at least. The recent highs could very well be of great significance if prices continue to fall in an pattern. For more help trading these indices, become a member today.
As always, thank you for taking the time to catch up on my thinking.