August 23rd- Dave Banister, Chief Strategist

The SP 500 has been bouncing around over the past few days after falling below the bearish wedge at 1130 as I had predicted here at TMTF back in late July and early August. I was looking for 1070 as the first pivot, which we did in fact see last week, with a bounce to 1100. The market has dropped back into the 1060′s now, which is below the 1070 pivot and above the 1058 pivot. As recently as last Friday night, I mentioned to our subscribers to look for a bounce to 1082 on the SP 500 to short.  The market bounced on Monday morning to 1082 and reversed down.  I believe markets do not move in random fashion, and TMTF subscribers are seeing that first hand.

There is a potential bullish scenario (though I rate very unlikely) developing which I point out in the video, and I continue to outline the probabilities of a lower downside move near term as well.  I have continued to espouse that the drop to 1011 on the SP 500 in late June, early July was not enough time or possibly even price action to complete a correction of the preceeding 13 month rally.  A bearish rising wedge TMTF identified broke down hard and there is evidence of a drop to as low as 942 on the SP 500.  This is the same forecast I made in late April of this year, a multi-month correction ending in latter September.

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