Standard and Poor’s 500 Weekly – August 3, 2012

S&P500 Weekly -

Similar to the Dow, we had four down days followed by a big surge today to finish the week up.  Under Elliott wave, wave 2’s usually end on low volume and a stream of positive news.  This week closed out with lower volume than the previous five weeks.  Since the start of wave 2, volume has been declining (see bars along chart bottom).  The MACD has turned up, however, we are also nearing the end of wave 2.  We defer to the daily and hourly charts for a more detailed view of where this market is likely headed.

Click on chart to enlarge Standard and Poor’s 500 Weekly – August 3, 2012