2hr view of SPX, keeping track of the chart

The goal of this chart is to look at where we are in the cycle on on the mid-term chart. Keep in mind these are just lines and NONE of these "lines" are intended to predict price exact action. They simply provide context to where the chart is in space.

SPX is currently in a down trend and saw a decent sell off as 10year rates continued rising after FOMC meeting minutes today.

Banks were hit with the Fitch Downgrade, Oil was hit with China news, Tech has been hit with earnings after a massive run up for the first half of the year.

With August Op-Ex on Friday and JPow at Jackson Hole next week I would expect we either continue selling off down to the 4400 area (an ideal area to swing long) or bounce and chop into Friday.

Apple's price action should provide a strong clue towards market direction.

Going into the second half of the year I would not be surprised to see small caps and mid-caps dominate the price action while large caps chop around and consolidate. It may be worth paying attention to IWM and IWR going forward.