If you are using elliott waves you know that impulsive waves consist of 5 waves. Recent movement in S&P is a clear 3 wave move. I cannot count 5 waves down because they are not there. I try not to be biased and see 5 waves where they are not. This doesn't mean that the index cannot go lower. As mentioned yesterday, if 1398 is broken, the road is open to revisit 1380 level.
Important support is found in 1400 area with 1398 low signalling the possibility to see 1380 if support broken. However the bigger picture is more bullish to me than bearish. I don't think the market reached 1420 just to make a 4 point higher high. Tomorrow Jackson Hole speech is at the centre of attention and I think the market will pick up volatility and start a new upward trend at the beginning of next week.
Thank you for taking the time to read my post.
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