In Case You Missed It: Week Ending Friday Aug 7, 2026

In Case You Missed It…

We expected more clarity this week and we got some. The equity indexes exhibited more conformance this week, but not much. They all ended the week strong, with SPX breaking above is trading range and heading to a new all time high while NDX merely made it back to its sideways range. SPX gained approximately 268 points this week. Volumes on the indexes are back to their average levels. You can also see a subtle shift of sentiment pattern on the Balance of Power indicator (a large lot accumulation/distribution indicator) on the weekly SPX chart (the weekly NDX chart remains murky):

SPX put a little distance between price and the Gamma Threshold level. We are comfortably long gamma. We will find out next week if we can maintain the long gamma regime. It is noteworthy that at 7590 SPX, the GT level has risen quite a bit this past week, indicating that put gamma is accumulating; large players are accumulating puts.

Turning now to the wave counts, Friday in the Flagship Service, Avi posted his latest update on SPX, here: https://www.elliottwavetrader.net/trading-room/post/10333067. He noted that the 5min SPX chart was illustrative of the probable paths SPX could take in the near term:

There are just two colors on the chart: white and yellow. The white count depicts the expanded (b) wave top that we have been tracking for months. This count should not be discounted by the bullish week we had. Recall, NDX did not reach a new high and tech has been leading this market. Avi discusses the yellow count in more detail in this post and will be updating us all more in his upcoming Weekend Update.

For a more immediate walk through the yellow count, please see Levi’s wonderful write-up posted today in the Flagship Service, here: https://www.elliottwavetrader.net/trading-room/post/10334116.

What About a Potential Trade?

A helpful habit that Lead Analyst Mike Golembesky has gotten into is that he frequently posts which of the major indexes currently presents the best Elliott Wave setup. On Friday afternoon, Mike shared a chart of the Russell 2000 futures (RTY) with the Flagship Service, here: https://www.elliottwavetrader.net/trading-room/post/10333785. Mike stated that if he sees a corrective retrace on the RTY chart, we could have an actionable long setup (using the IWM ETF, for example).

The Metals (and Miners) Trade

Avi makes it look so easy, and it was! This is one of the main reasons I enjoy taking trades with him: they are usually simple to manage and low drama. Metals and the metals miners had quite a week. GDX went from $74.10 to $89.89 this week. However, we do not have the all clear in metals just yet.

On Friday morning, Avi posted a Pre-Weekend Update to the Flagship Service, here: https://www.elliottwavetrader.net/p/analysis/Metals-PreWeekend-Update-2026080710333046.html (anyone can view this link). In his post, Avi analyzes whether the bottom is in for the metals complex or if one more low remains to be seen. If you are trading the complex, I suggest reading this and the Weekend Update on Metals.

Of note, earlier Friday morning, Avi posted the following, suggesting that it may be prudent to protect these quickly-gained profits. I, personally, set all my metals stops to breakeven and trimmed a little off just one of my miner stocks, but I was not as allocated as I had planned to be. If we do get that lower low, I will fill out my metals and miners sleeve.

The Bi-Weekly Sector Review

As mentioned last week, the Bi-weekly Sector Review is a new feature of the Flagship Service. MarkZ’s lastest Sector Review is in video format, posted Friday, here: https://www.elliottwavetrader.net/trading-room/post/10333899. If you follow the link, you will see that the different charts are listed and time-stamped. You will notice a lot of three wave moves and diagonals, which is reflective of the market condition we are currently in. However, some clarity is beginning to emerge and if markets do intend to go higher, sectors like industrials, materials, and biotechnology could lead the way.

I look forward to reading Avi’s Weekend Updates on Sunday. We expected volatility two weeks ago and we got it. We expected some clarity this week and we got some clarity. It isn’t so obvious what we should expect next week, although some consolidation/digestion of this move up in indexes would be healthy.