SPX Rhythm

Some analysis, Carl Futia style:

The chart above shows the SPX (click to enlarge, chart courtesy of SaxoBank). During July the index had two sustained moves up. The green boxes highlight the corrections that punctuated these rallies. They are about 10 to 12 points big.

Note that after each such a correction the market moved 22 points in the first case and 29 in the second (purple arrows). If the third box is followed by a move at least 22 points long, the market would have to reach 1110 before a pause of at least 10 points.

This suggests that there is more upside from these levels and that we shouldn't see a correction of 10 points or more before 1110.