Weekly preview

Short term view - one more leg higher expected.
Intermediate term view - it is more likely that the correction is already running.

We have the short term bottom and move higher.... overall the same analysis like last week. We had one strong day and three days nothing so I think it is more likely this is wave B. As long as the price stays below resistance around 2475 it is wave B. If we see the price above it expect another higher high around 2520.


TECHNICAL PICTURE and ELLIOTT WAVES
Short term - more likely another leg higher to challenge resistance. Less likely scenarios - plunge lower from this levels and B is over or a move above resistance for a final high around 2520.

Intermediate term - I think correction is running and it will take time... most likely some combination. Now I expect one more leg higher next week and the histogram resetting above zero.

Long term - no change, expecting correction wave 4 followed by another rally higher. All indicators are pointing lower. I think RSI should at least touch the trend line before the correction is over.

MARKET BREADTH INDICATORS
Market Breadth Indicators - trying to turn higher, but no signs of strength - most likely this is wave B higher.
McClellan Oscillator - above zero cleared the oversold conditions.
McClellan Summation Index - sell signal.
Weekly Stochastic of the Summation Index - sell signal reached oversold levels.
Bullish Percentage - sell signal.
Percent of Stocks above MA50 - in the middle of the range.
Fear Indicator VIX - looks like a-b-c lower with another leg higher to follow.
Advance-Decline Issues - turned up in the middle of the range, but if you see the cumulative AD this move higher should be corrective.


HURST CYCLES
Day 4, I think the next 40 day cycle is running.

Week 1 or 8? Either we have 20 week cycle low in this case we should see higher high or we have 11+8(20 week cycle low in July) weeks and we are in the middle of the second 20 week cycle from April this fits much better wit a correction already running.

Weekly preview

Short term view - short term bottom and move higher.
Intermediate term view - difficult to see something very bearish at the moment..... I am not sure if a correction is running or there is one more high(SP500 and DJ other indexes made a top already).

We did not see one more low for an impulse, the market just continued with the retracement higher and another leg lower. So far I see only a-b-c from the top... not very bearish. The only bearish option is the indexes to accelerate lower for wave 3 which I do not think it will happen, even one more higher high looks better (see last chart).
Possible corrective patterns if a correction is already running - wave A of a zig-zag or wave 3 of a diagonal for wave A of a zig-zag.... and this zig-zag could be part of a triangle or combination.


TECHNICAL PICTURE and ELLIOTT WAVES
Short term - I think move higher is coming. If it is a corrective and stays below the resistance zone it is wave B. If it is impulsive and break trough resistance - one more high for the end of wave 3 on the daily chart.

Intermediate term - the pattern looks corrective may be part of a complex combination or triangle.... even another high is possible.

Long term - expecting correction wave 4 followed by another rally higher.

MARKET BREADTH INDICATORS
Market Breadth Indicators - the McClellan Oscillator says we should expect a bottom, but a short term bottom. All other indicators are pointing lower.
McClellan Oscillator - making a second trough probably with divergence.
McClellan Summation Index - sell signal.
Weekly Stochastic of the Summation Index - sell signal.
Bullish Percentage - sell signal.
Percent of Stocks above MA50 - heading lower still elevated levels.
Fear Indicator VIX - not so funny anymore if you are short volatility.
Advance-Decline Issues - here is why this decline is different than May 17th - majority of stocks are declining. We have a sell signal and even if we see a higher high I expect a divergence and intermediate term top. So as I wrote in comments this is a mirror picture of May 17th the market is topping compared to bottoming back then.

HURST CYCLES
Day 31 of the 40 day cycle, nearing a bottom.

Week 18 we should be close to a bottom.

Tom Demark SEQUENTIAL AND COUNTDOWN - this technique spots areas of exhaustion.
The weekly chart still pointing lower. The daily chart - this sell off came one day later and the setup was negated. This is a hint that is more likely that we have a-b-c lower and not an impulse.

Nasdaq (QQQ) does not look bearish either. May be some kind of a diagonal for A and B should follow.

The same on the daily chart.

DJ - again acceleration lower for bearish pattern when the index is above MA50 looks less likely. Even higher high looks better, unless some unexpected bad news hit the market.