S&P500 Weekly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

Buying is fading as we found another all time high.  We remain extremely overbought.  We have moved almost 160 points up in five weeks.  China defaulted for the first time this week.  There are other major breaks in the system – but we await a confirmation for reversal.   We are at resistance of a two and a half year bull channel.  We expect a pullback next week.

Click on chart to enlarge S&P500 Weekly Near Channel Resistance – More Up Weeks – Less Volume

S&P500 Hourly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

The buying is still coming as governments stoke central banks and central banks stoke buying of this bull run, now in it’s 61st month.  After this next push up, we expect to see a pull back of some kind.

Click on chart to enlarge S&P500 Hourly Stuck In Consolidation – Means Another Push Up As Pathetic As That Sounds

S&P500 Daily -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

There was no end to miserable economic news today and the markets hardly moved.  Technicals remain largely bullish.  Weak volume and a doji – our only indications that this may slow down.  GDP forecasts remain on the decline.

Click on chart to enlarge S&P500 Daily Fails On Follow Through – Closes Flat On Lower Volume

S&P500 Hourly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

Technicals are showing more weakness.  A close below 1825 helps confirms a new bear trend.

Click on chart to enlarge S&P500 Hourly Tanks Early And Recovers Somewhat In The Afternoon – More Downside Tomorrow

S&P500 Daily -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

Europe was down between 2.5%-3.0% today.  US markets weren’t even close to this.  But cracks in central bank buying are showing.  Today’s candlestick is bearish in theory, but the long lower shadow indicates buying, but not enough to close positive.  Look for more downside tomorrow.

Click on chart to enlarge S&P500 Daily Tanks And Recovers Again – Technicals Remain Mixed – More Downside Likely