http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p01433014824&a=207879904

We are in a bit of tight spot from the point of view of trendlines here.  In effect there is no good anchor point in September, leaving us to basing points and money management stops as we previously discussed.  Nonetheless of some use to us is recognition of the surge-drift-flush pattern which appears to be setting up now.

It is seen twice in July and once in August (in which case it started the downwave).

We are now waiting for the flush of this pattern which should occur Friday.  This is mainly for traders — trend followers should already be informed as to the situation by our previous several letters.

Re: REE appears to have experienced an exhaustion gap and be a sale.

It is worth commenting here on how generally useless are those nostrums about sell in May and go away –and September is the cruelest month.  Viz, this September, best in years.