S&P500 ~ market internals are losing steam demonstrated by the wedge shaped chart pattern....
The bad news on the economy keeps getting worse and if we're correct about the short and long term wave formation then the rally based on hope is about to end. Our first chart today is labeled to show that yesterday's high was the end of a "double zig-zag" correction from the March "minor" wave 1 low. Yesterday's high made wave (c) of [y] 61.8% of (a) of [y] which is a common relationship within zig-zag patterns. Also, wave (c) of [w] was a Fib 76.4% of (a) of [w]...another common target. The chart pattern is now forming a bearish wedge on contracting volume adding to the scenario that the rally is nothing more than a bear market correction. We didn't get much validation today with price only pulling back to the lower trend-line...but, after market trading has gapped below. We need to see price move below 2850.00 and then 2700.00 for confirmation that the wave 2 correction is complete. It's also still possible to count an ongoin...