Bulls Are Trying - Market Analysis for Aug 28th, 2023

Clearly, Friday’s low is holding thus far.  And, as I wrote in the weekend update, that is the key to a direct move to 4800SPX in the yellow wave count.

As I write this, the market seems to be attempting to complete 5-waves up off that Friday low.  But, we will need a higher high over today’s high for a 5^th wave in that structure, which would be labeled as yellow wave [1] of wave [iii].  Should we complete a 5^th wave higher and then see a corrective pullback thereafter (yellow wave [2]), you can choose to enter a long trade with stops at Friday’s low if you are a bit more aggressive.

But, as I have noted several times already, I want to see the market break out through the 4479-90SPX region to make it much more likely we will be attempting a direct path to the 4800SPX as outlined in yellow. Keep in mind that even if we do see such a break out, we may still see a pullback to the 4400SPX as outlined on the 5-minute SPX chart.

For now, I still remain cautiously optimistic. But, we have our parameters, as outlined over the weekend.