Monday, October 12, 2015
SPX and INDU Updates
There's not much to add after Friday's exciting session (by which I mean Friday's unexciting session), but I've drawn up a couple charts anyway, mainly to fulfill my contract with myself, which states that I must annotate at least 45,974 charts each year.
We're into a zone where we should probably at least begin watching for topping action, though one formula suggests this wave could run as high at 2071 +/- before experiencing any correction more significant than the one we saw on October 2 -- so Friday's warning to "let the market lead" remains in effect, at least until such time as it leads us to a more clear suggestion of a correction.
I've drawn up a near-term chart of SPX which gives us the first levels to watch:
Let's take a look at a count that allows for the potential of a fairly direct top, though here again, we have nothing yet that indicates a turn has begun:
Also, I stumbled across this old SPX chart, and updated it because the support/resistance lines are relevant, and the market reacted to one of them on the Fed spike (to 2020) last month:
In conclusion, there are now enough waves in place for a complete (c)-wave rally, and the minimum requirements have been met and exceeded. The trend at all degrees currently remains up, but if bears can sustain a break of 2007, then we can at least start considering the idea that a deeper correction may be underway. Trade safe.
Posted by PretzelLogic at 3:36 AM