Written by Jim Welsh
A rebound in stock prices from the major decline in the first part of the week (August 12-14) could still move higher. But I see a number of factors that indicate stocks are vulnerable to a further decline in the near future.
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After falling from an intra-day high of 2943 on August 13, the S&P 500 retested the lows from August 5 and August 7 on August 15 when it fell to 2825. The drop from 2943 to 2825 appears to be a 5 wave decline which suggested a short term rally was likely. The 50% retracement of the 118 point drop is 2884 and the 61.8% target is 2898. The high so far on August 16 is 2891.
Let me explain my concerns in less than 5 minutes:
Source: YouTube
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