On Thursday the DJIA and S&P 500 (SPX) put in reversal bars. We got the follow-thru on Friday with the DJIA down nearly 300 points and the SPX down 32 points…the biggest down day since Sept. 1st. Now we have a similar reversal bar for the week.
The market had reached an overbought extreme with the 3 week counter-trend move. Based on Elliott Wave count, Put/Call extremes and other momentum indicators there is still more selling to come.
I go into all of this in the detailed Weekend Market Analysis Video below. I also review the weekly charts of American Express (AXP), Bank of America (BAC) and Goldman Sachs (GS).