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Our last update was on August 15th. The S&P 500 peaked the next day. Stocks are now down -4.65% since that high through 12:30 p.m. EDT on Friday, August 26th. The S&P 500 rose 9.11% in July after dropping -8.39% in June. August sees the S&P 500 now down -0.54%.

Year to date now the S&P 500 is down -13.75% through Friday’s noon time noted above. The low on the S&P 500 was -23.07% on June 16th. So the S&P 500 had been in rally mode since mid to late June and now the downside is being tested.

In our last Bias Indicator update on the major equity indexes, the only periods that had strength were the Daily and Weekly (see July 29th Table). Now the Monthly is starting to see U.S. Equity Indexes move back into their DMA Channels (see August 15th Table).

August 15th Table

August 26th Table

One month ago we noted, “The trick in August is going to be getting the indexes into their monthly DMA Channel first and then above the channel”. The S&P 500 and the other indexes made it into the Monthly and now have fallen back below the channel.