Standard and Poor’s 500 Weekly – August 24, 2012

S&P500 Weekly -

Like the Dow, this week closed down, but managed a new three and a half year high. This first down week in seven weeks was accompanied by increased volume – possible start to the selloff.  We’ve adjusted the wave count to show the end of primary wave 2 – almost three and a half years in this trend.  The MACD has diverged once and when the MACD turns down again, that will be a second divergence – extreme sign of market weakness.  Strong momentum to the downside is what will accompany primary wave 3 down.

Click on chart to enlarge Standard and Poor’s 500 Weekly – August 24, 2012