Examination of the August 2015 – Mini Crash

During the last few months, the US stock market has had a deterioration of internal momentum.   Something similar happened in 2015, except then the US main stock indices went sideways forming a double top.  

The daily S&P 500 (SPX)  chart courtesy of Trading View illustrates the action from 2014 to 2016.

The SPX made its high on 05/20/15 declined, then trusted up to a secondary top on 07/20/15 which was also the Nasdaq Composite (IXIC) then all-time high. The IXIC was the only one of the three main US stock indices making a new high, this is what I call a  bearish rule of the majority signal. The truth of the market is with the non-conforming indices.

Subsequently, there was a mini crash. Note, the  bulk of the decline took only a few trading days.

The current US stock market could be vulnerable to a 12 to 15% mini crash sometime between late August and late October 2021.

The next blog will examine momentum and price patterns of the current US stock market.

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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