26 Aug 2016 - EOD, EOW

Weekly bearish candle and a daily bearish engulfing candle.  The ST down indicator was at it again..  The uptrend line support now holds the daily and weekly bar in place, and will need to push below the 2160 - 2159 level.  Sandy Jadeja forecasted to watch for a volatile Aug 26 - 30.  So far, right on queue.  If the mentioned level breaks the next level to watch is the 2123 level (75 Day MA).  Of course what would a market be if everything is so easily seen and simple to analyze.  Therefore, one must be aware of the signals entering into OS territory which raise the risk of acceleration to the downside.  We do not need to be reminded that J-Hole still in effect this weekend, and all it takes is the wrong statement to push prices up or down violently.

Since we are entering a "Volatile" time, I should mention again that most if not all signals become laggards, when on a regular day it is one step behind would now become 3 or 4 steps behind the moving price.  Eventually it will catch up, but until then we should put our long-term and Sentiment signals in the back burner and concentrate on the shorter duration.  With all the talk of a major CIT occurring between now and Sept 9, we should start looking at how else to protect whatever profits has been made to date.  The 60min chart below should serve as an example of where price is sitting currently.  This may not be evident at first glance, but price is sitting on the bold dotted green (downtrending) line of the intra-chart and the previously mentioned Daily (uptrending) line (Red Dashed).

Next week will also be important in that the monthly will also close and print its bar, and can produce a CIT if price does not rally back to a bullish form.  Everything is coming together...  Question is, are you looking at the right signals?

SEN: Bullish
ST: DOWN
PA: DOWN
R: NA

Note: If markets shows itself as being very bearish, I would likely target a 1600 SPX as a nice place to rest the bears.