Sentiment and Momentum Indicate SPX Bottom on 8/15/18
My prior SPX post noted that a bottom could have been made on either 8/10/18 or 8/13/18.
The decline lasted a little longer and has not reached the primary price target, but the evidence of a bottom today is stronger
than what I noted in the last post. Today the PC ratio reached the highest level since the early February bottom. Additionally
the 30 minute RSI has a significant bullish divergence.
The original price target for a bottom was SPX 2790-2791.
Today the low was at SPX 2802.49 very close to the top made on 3/18/18 at 2801.90.
The New Moon made on 8/11/18 was not a factor because todays bottom is outside a reasonable leeway for the lunar cycle. I use a leeway of plus or minus two trading
days from a new/full moon.
There is a very high probability an important short term bottom was made on 8/15/18, the next rally has a very good chance
of at least reaching the low 2900 area.
Mark
The decline lasted a little longer and has not reached the primary price target, but the evidence of a bottom today is stronger
than what I noted in the last post. Today the PC ratio reached the highest level since the early February bottom. Additionally
the 30 minute RSI has a significant bullish divergence.
The original price target for a bottom was SPX 2790-2791.
Today the low was at SPX 2802.49 very close to the top made on 3/18/18 at 2801.90.
The New Moon made on 8/11/18 was not a factor because todays bottom is outside a reasonable leeway for the lunar cycle. I use a leeway of plus or minus two trading
days from a new/full moon.
There is a very high probability an important short term bottom was made on 8/15/18, the next rally has a very good chance
of at least reaching the low 2900 area.
Mark
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