Sp, monthly, rainbow (Elder Impulse)
*Don't get too focused on the projected scenario on this chart, its merely one of many outlooks I am considering.
Summary
I think the rainbow style charts have something useful to offer. Here you can see we are awaiting the first red candle. For that to happen we need the MACD to go negative cycle, with a bearish cross. Right now, that does not seem likely until we take out the previous early June low of 1266. I think its important to note that in each of the previous two down cycles we did have one significant red candle..so...that's what I'm looking for again in this current cycle.
I would really like to see a break below 1325 either tomorrow or Friday. That will open the door to the first attempt to break what is the important support zone of 1310/00.
If we can close July under sp'1300 (August is next Wednesday...this year is flying so fast!), I have high confidence 1266 will quickly fail..and then the only issue is whether we floor around 1225/00 or 1170/50.
Looking ahead to Thursday
We have the usual jobs data, but also Durable Goods Orders, and some more housing data. I doubt either of those will be good, but as usual Mr Market is usually more about 'perception', than the underlying reality.
*There were some interesting stock moves after hours in AKAM, LVS, FB, and ZNGA
Both the 60/15min smaller cycles are all primed for a very bearish Thursday and Friday. With the daily cycle still weak, lets see if we can break the recent 1325 low.
Goodnight from London