Short term view - more likely lower, the indexes are not finished to the downside.
Intermediate term view - waiting for the bottom of the move lower than we should see a rally.
The markets are waiting.... doing nothing. Probably the bottom will be around the US election which will be the catalyst for a rally. Usually when the markets are pushed lower expect move higher after the news/event.
The same like last week - two possible patterns triangle or zig-zag, nothing to suggest a bottom, the price is struggling for 8 days with resistance around 2145 and now MA20... not very bullish.
TECHNICAL PICTURE and ELLIOTT WAVES
Short term - I have not watch the charts this week, it is waste of time... just waiting. The two patterns are shown on the chart triangle yellow and bull flag(zig-zag red).
Intermediate term - the same shown on the daily chart. No signs of a bottom, no signs that this is something more than a corrective move. So waiting fo a bottom followed by a rally.
If the price manage to move above resistance and MA20 we will have a triangle if it fails I expect to see a bull flag.
Long term - the indicators do not look pretty and this should be the last move higher before 18 month cycle top and a bigger correction lower.
MARKET BREADTH INDICATORS
The Market Breadth Indicators - the same like last week mature correction, but no signs of a bottom.
McClellan Oscillator - expect to see one more trough with divergences.
McClellan Summation Index - sell signal.
Weekly Stochastic of the Summation Index - sell signal, in oversold territory for a while.
Bullish Percentage - sell signal.
Percent of Stocks above MA50 - close to oversold level one final spike below it will look great.
Fear Indicator VIX - some fear and level like 20 will be good for a low. I think it has started building divergences for an intermediate term top.
Advance-Decline Issues - in the middle of the range.
Another two weeks will finish 40 day cycle.
It will look better if we see 40 week cycle with the low for this correction... but unusually long. Not so important we will adjust the count later if necessary.
TNA as a proxy for RUT - the same like last week. It looks like consolidation before a last move lower to finish an impulse from a flat correction. Watch for a divergence.