A few days ago I said that strong move
was impulsive, indicative of a wave 3 of some sort vs some big top
because 1. just look at the strong price action, and 2. no MACD or
RSI divergence that is typical in a 5th wave (wave 3's don't have
it).
Now here's where there's always two
scenarios - kind of like the 'rule of 2' with the Sith in Star Wars
LOL, either wave iv completed and we go to new highs next week, or
this is still wave iv, and we've had two waves (a & b) so far
with c wave down to come to complete iv
adding to my SPX post below where I laid
out the two options. Note the MACD divergence on the VIX and the
support trendline could provide a pop, to support the abc
potential
SPX 60 min - same analysis for the QQQ's as well
Posted by matt on 7th of Aug 2026 at 04:18 pm
A few days ago I said that strong move was impulsive, indicative of a wave 3 of some sort vs some big top because 1. just look at the strong price action, and 2. no MACD or RSI divergence that is typical in a 5th wave (wave 3's don't have it).
Now here's where there's always two scenarios - kind of like the 'rule of 2' with the Sith in Star Wars LOL, either wave iv completed and we go to new highs next week, or this is still wave iv, and we've had two waves (a & b) so far with c wave down to come to complete iv
_SPX e 60 min e - Chart Link
Update: SPX 60 min - same analysis for the QQQ's as well
Posted by matt on 7th of Aug 2026 at 10:35 pm
adding to my SPX post below where I laid out the two options. Note the MACD divergence on the VIX and the support trendline could provide a pop, to support the abc potential
_SPX e 60 min e - Chart Link
$VIX 60 min log - Chart Link
Posted by law6 on 7th of Aug 2026 at 04:47 pm