S&P500 Market Breadth Driven Short Term Forecast Starting Aug 15, 2016

By Lawrence

Review of Forecast for Aug 8, 2016

No 1% move in either direction led to range bounded actions, so 2% breakout play not triggered. Longer term breadth sell setups developing but not confirmed yet. Upside bias worked out. The breadth analog model did a reasonable job last week.

Forecast Starting Aug 15, 2016

Summary of the S&P500 short-term forecast based on my proprietary market breadth analog model as of the close of Aug 12, 2016:

Volatility in breakout mode with potential in both directions
Breakout setup for 2% or more swing this week in either direction with bias for the downside and potential slingshot play
1% move in one direction will likely give us 2% in same direction
Longer term breadth divergence sell setups entering critical time window

For timely update including real-time trading signals and analysis join us today.

Report Snapshot

Short Explanation About The Model

My market breadth based analog model takes into account the short term volatility, daily market breadth readings and a few other intraday breadth data to identify the current market conditions. Using the information, the model then went through the historical data over the past 20 years to generate its statistical analysis. The model has been pretty good at identifying important swing tops and bottoms over the past few years by providing early warnings about potential volatility upticks.

For the technical explanation of the concept, you can read about it here, Market Breadth Primer: Market Breadth Analog Forecasting Method

To access the market breadth analog forecast report daily, sign up as our paid member now