The market has spoken, and we have had a "more severe correction." The odds toward a correction where we have a 20% correction (bear market) in the major indices has increased as we made a new low in the S&P 500.
We still haven't had a follow through day, but we should still be on the lookout for one despite the above. The Russell has led us down, is in bear market territory, and I have drawn a few lines where we might eventually get support. We are very oversold, I circled a few pertinent indicators. But Friday put/calls, oversold oscillators got to pretty severe levels. I thought we might bounce and make one more low.
Watch list update -
LITE - Still holding its pocket pivot and it put in a tight week in a handle. Encouraging.
N, LNKD - same camp. No pocket pivots in the bases that have held. If they are forming real bases, this would have to be the lows of their bases. No much more to say. They stay on my watch list for pocket pivots down the road.
VIAV - Similar to N and LNKD. The one thing I would add though is for you Elliott wavers: VIAV is definitely in its final corrective wave. There is no such thing as a quadruple 3. I will try and explain in a subsequent post. But here is the weekly. At key levels.
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