August 30th, Chart to Watch

Today, on the 30th, I want to mention the need to pay attention to the significant decline in the US SP500, which formed a double top in July.

After the decline of the US Growth Value Index (IVW/IVE) and the subsequent divergence, stock prices have also turned downwards. This pattern can be the starting point of a major decline. When it reached its peak on July 11th, it experienced a sharp drop after the semiconductors weakened and growth became sluggish.

Currently, the SP500 still has room until the 25MA, so we should be cautious of any pullbacks towards the 25MA.

If this trend continues, Japanese stocks will also face resistance, and it will be difficult for them to stay above 38,500 for an extended period of time.