SPX tried to advance above the turquoise fork resistance but failed once again. The cycles are mostly negative during the rest of August. Additionally, there are very negative spots in mid-September as well. Initially it may establish a gradual trend lower with a fair amount of chop along the way.
The negative cycles have been discussed, and the market is providing evidence that suggests weakness ahead. There is no credible possibility of significant upside ahead in the near term.
These correlations will not provide precise timing of large declines used on their own, but clearly caution is a requirement going forward from this point. A minor higher high is still quite possible, but nothing significant.
RLX, Rifin, TRAN, RUT are all leading down from the May high.
The Financial index Rifin double topped in 2010 and 2011, and has a lower high this year.
This chart below was shown in 2011 as evidence prior to the summer 2011 collapse. The warning signs were obvious at that time, in advance, of the plunge.
The warnings are similar this year with financials continuing to underperform dramatically. The next crisis is more likely to come from the Banking sector than Europe. One word can justify a huge spike in the VIX - "Lehman".
Initially, the large pattern suggests UVXY establishes a gradually rising trend. Watch for a trend to develop as shown with the orange fork support and resistance. It will likely be choppy, but overall gradually rising.