Figure 1. NAS 1-min and SPX 60 min charts.

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1 Today s update will be brief as price on most indices has now reached their upside targets for the anticipated intermediate wave-a. The NASDAQ has reached the upper end of its first resistance zone. If it can move above it, then NAS7150 could be next (50% retrace of prior decline), but with the 50d SMA at $7013 and the index getting overbought, not shown, it may not get there. The S&P500 is still nicely within the ideal SPX target zone for wave-c of wave-a and there s plenty of negative divergences on the hourly RSI5 and MACD to suggest the next move will be down, while the index is also getting overbought on the daily (not shown). Now divergence is only divergence till it isn t but for now it can t be ignored. A move below today s low SPX2569 will be a first sign intermediate-b is underway, with confirmation below SPX2545. I still expect wave-b to reach SPX2480+/-20p. Figure 1. NAS 1-min and SPX 60 min charts. Price at upper end of resistance zone, AND still well within the ideal SPX for intermediate-a. Hourly and RSI5 negatively diverging. 1 P a g e

2 Today the NDX reached just past its ideal c=a relationship and the 38.2% retrace of major-a, which is normally the ideal wave-a of wave-b target. A tag of the 50d SMA can t be excluded, but will likely be a nail biter. Figure 2. NDX daily charts. Ideal intermediate-a target zone reached, but no sign of topping yet. 2 P a g e

3 The RUT (Russell2000) has now reached its ideal lower end of the wave-a of wave-b target zone. It is now very overbought per the daily RSI5, but it can still try to reach the 38.2% retrace and 50d SMA before rolling over. Figure 3. RUT daily charts. Ideal intermediate-a target zone now reached but overbought. May still try to go for 50d SMA / 38.2% retrace. 3 P a g e

4 The DJIA could still tag on another ~400p (~1.6%) to try to tag the 50% retrace, which by then would likely coincide with its 50d SMA. It would also allow for the DIA (ETF) to reach the blue Support/Resistance zone. Note how the DIA is rising with decreasing volume and gap up opens but 2 consecutive DOJI candles. Not very bullish candles in other words; no follow-through buying in cash. Figure 4. DJIA daily chart. Could still try for the 50% retrace/50d SMA 4 P a g e

5 Bottomline: Today another index (the RUT) got to within its ideal wave-a target zone and once all markets have reached their upside targets only then can they start to move down. There s still a little more upside potential possible (~1.5% for most indices), but the hourly charts TIs are negatively diverging, while the daily charts are getting overbought and price is in its ideal target zones. Hence, the combination is not in favor of the Bulls. A move below SPX2569 will therefore be a first sign wave-b to ideally SPX2480+/-20p is underway, while a break over today s high targets SPX2625 (~1.5% above today s close). Similarly the DJIA can stil try to reach its 50% retrace and 50d SMA at ~400p above current levels (also ~1.6% above today s close), and the RUT could stil try to reach the upper end of its wave-a target zone at $14870 (~2% above today s close). But IMHO upside potential is now outweighted by downside risk. As of writing market breadth data has not become available yet and can t be provided. Aloha, Dr. Arnout, aka Soul, ter Schure 2019, Intelligent Investing, LLC. This copyrighted daily periodical is published on most stock market trading days by Intelligent Investing, LLC, and is intended solely for use by designated recipients. No reproduction, retransmission, or other use of the information or images is authorized. Legitimate news media may quote representative passages, in context and with full attribution, for the purpose of reporting on our opinions. Analysis is derived from data believed to be accurate, but such accuracy or completeness cannot be guaranteed. It should not be assumed that such analysis, past or future, will be profitable or will equal past performance or guarantee future performance or trends. All trading and investment decisions are the sole responsibility of the reader. Inclusion of our information for trading and investing are the sole responsibility of the reader and cannot be construed as any type of recommendation, nor solicitation. 5 P a g e