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THE STOCK MARKET UPDATE

August 4, 2014

© David H. Weis

The S&P performed as expected today by rallying into the 1932 area where Friday’s
intraday rally met resistance. The door is open for further gains and I have mentioned the
1942-1950 range as a potential target. On the 1x3 point & figure chart, the entire line of
congestion across the 1915 line projects a rise to 1972. The more conservative count calls
for a rise to 1954. Anything is possible.
Since the bullish turnaround in October 2011 (blue arrow), every sharp sell-off has failed
to generate a shift in the intermediate or long-term uptrend. The red arrows point to
the months where prices broke hard. So far, the sell-off from last month’s high is smaller
than all of the others highlighted on the monthly chart. This chart warns against becoming
long-term bearish too quickly. Unless something totally unexpected happens, like Russia
grabbing other countries or the ebola virus becoming a global pandemic, any topping
process will take months to form.

www.WeisOnWyckoff.com

dhw@weisonwyckoff.com

Tel 617.489.9155