Stocata S&P 500 Analysis: August 17, 2019.

In my last comment (June 8) I wrote: "The index reached the 161.8% Fibonacci down projection and a price support I indicated last week. This was the end of a first zigzag wave-a down. From that point we saw an upward correction wave ending at the R1 pivot resistance of the current month and price resistance at the level of the top of the previous intermediate wave up. If this is the end of the up retrace, there will be a hidden divergence with a lower top in price and a higher top in the indicator. That would confirm a continuation of the move down. You can also see that the 216.8% downward Fibonacci target coincides with the wave-c having the same length as the wave-a (the red line at the right). All latest gaps are closed. Best guess is that we can expect a zigzag down now for a completion of correction wave-c. Read my updated comments for the weekly chart and monthly chart for more information regarding the longer term view."

It was not the end of the up correction. The move up continued most probably finishing a long term top wave {5} some 3 weeks ago. The first reaction from the top wave {5} created a correction wave a (or 1). Followed by some 50% retrace for, most probably a wave b. I assume last week wave c started and, is now making an in-between lower degree abc correction wave. Note that it is not impossible that we may get a wave 2 correction. This would mean that we will get a higher price above the current wave marked b. If we stay below the top of wave b we will see a further move down for the creation of correction wave c. The target is around 2750. Finally I expect a lower top in price with a higher top in the SRSI indicator. That would confirm that the last completed wave is a correction wave and that we must expect a continuation of the long term down move. Read my updated comments for the weekly chart and monthly chart for more information regarding the longer term view.