The alternative would be a bottom to Wave E around August 19th when Wave E would equal Wave C in time. Currently, in this view it would be a wedge for Wave E. We might need more time for the BBs to pinch and the MACD finish it's work lower and a wedge structure is supportive to that idea.
$SPX Weekly: On the weekly, there's still a little room before we test the up trend line. It's something we should continue to watch.
IBM: Stock now has divergences forming with the MACD ready to turn down. Will price and gap support hold for now? Another push up should pinch the BBs too.
AAPL: The stock still holds the steep uptrend line. We could easily get another bounce higher.
My Watch List: I have two bearish idea on my list.
WYNN: Price reversed off the top channel line with the MACD rolling. I'd prefer to see this bounce again if I were to short it though.
CMG: Divergences in place but price has yet to break below the support line.
From My Trading List: Just like I suggested Thursday, if the market moved lower Friday I would close my bearish trades from Thursday. We closed both SRS and CMG for easy gains. I was not interested in holding them in case Washington provided a debt ceiling solution.
Next Weeks Game Plan: Since the market is waiting for Washington to provide a deal, trading could be tough until there is one, so I'm going to remain light and nimble. I want to see if we get that deal and how the market responds for a clue to Wave E.
Happy Trading
J.D. Rosendahl, Rosey