Bottom Line:
Last week’s highs in the indices are now the immediate upper levels to watch. A close above those levels by ALL FOUR of the primary US trading indices is a bullish signal.
As of Friday’s close, the Fed Jackson Hole event has not exactly inspired the equity market. Friday’s bounce, so far, is just a normal reaction to being a bit stretched to the downside.
We still have not seen anything resembling a downside extreme in internal readings. It doesn’t HAVE to happen, but it makes it easier to get a read if/when it does.
RUT Daily
Upper KRA: 1915-1905
Lower KRA: 1828-1817
SPX Market Structure
Two most likely paths:
NDX Daily
Upper KRAs: 15279
Lower KRA: 14557
SPX Daily
Upper KRA: 4458
Lower KRA: 4325
Dow Daily
Upper KRAs: 34694; 35145-35365
Lower KRAs: 34029
Internals
Approaching some extremes, but no clear washout.
