I hope everyone had a good holiday weekend... I know I did. I enjoyed just taking a nap on my swing on the porch was the hot weather has broke and it was pretty comfortable outside in the shade. Moving on... this week will be a short one since the market was closed yesterday.
We did not breakout and make a new all time high into the end of the month but we did close out near the higher range, and I've pointed out many time that the market will commonly produce "turns" around the end of any given month. Since we were up near a high it suggests we will turn down this week, but I still don't think we are ready for a big drop. Most likely we'll just see the right shoulder created that I've talked about many times last week as likely.
I still think a new all time high is coming before the bigger drop, so if we get a pullback this week it's likely just a buying opportunity before another rally into mid-late September. It's very possible that we reach my FET on SPX and/or ES before we finish this strong multi-month rally. In fact, it's looking like we could bottom for that bigger drop in late October right before the November election. Here's a chart...
Have a blessed day.
