Wednesday Market Update - August 26, 2026
The final mid week note for August. Considering the month starting with an alarm the market has done well to advance and be entering the final sessions of the month trading above key breakout levels. The risk on barometers in Cathie Wood’s ARKK ETF and IWM Russell 2000 are holding well.
The risk off criteria through mid week remain all clear with 0 of 3 for twelve consecutive sessions, momentum has stalled so an interruption is probable, but not concerning at this stage.
Trend: Price remains above the short term trend (7660)
Breadth: Positive. More stocks continue to make new highs versus new lows.
Momentum: Negative, Flat Momentum
Looking very closely at August, the S&P 500 has done well to consolidate neatly back towards the short term trend, with a nice support pocket below between 7500 and 7660. The risk off criteria held 1 of 3 through mid week.
The plan keeps the bullish:
Maintain bullish lean above 7660
Support pocket 7500 - 7660 is the benefit of the doubt as support, conditional on no risk off alarm
No bearish consideration until risk-off alarm triggered
8000 is the upside target
ARKK is held overweight.
The breakout above the consolidation has been well maintained through mid week. This is a clean breakout at this stage.
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