Thursday, September 24, 2015

SPX Update: Keeping It Simple

I'm going to let the charts do most of the talking again today.  First is the daily chart of SPX, which left a candle that suggests at least some upside follow-through is forthcoming:

Near-term, the pattern in SPX suggests bears should be cautious on a sustained breakout, which would target a fill of the noted gap. 

Finally, there are now enough waves in place for the preferred count's C-wave to be complete.  Note the addition of the black bear count potential, which would align with the chart above.

In conclusion, there are finally enough waves in place for a completed corrective decline.  Whether it's complete or not remains to be seen, but the daily chart does suggest at least some upside follow through.  If SPX can sustain a breakout north of today's high, then the next two upside inflection points appear to be the noted gap fill, and the 1990 area.  Trade safe.

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