Friday, January 6, 2017
SPX Update: Edwards and Magee...
Last update noted that an immediate breakout over 2263 should lead to a retest of 2273, and that was what happened. The bigger picture is unchanged, with SPX 2400 still in the cards unless and until the market suggests otherwise. And until the market suggests otherwise, the main question is how much more goofing around the market will do in the current price zone before its next "for real" move, so we're just going to look at the near-term chart today, along with some of the relevant levels:
In conclusion, there's been no real change since November, even though the market has spent the last month trading inside the famous Shake, Rattle, and Confuse 'em Pattern, which was first recognized by Edwards MaGee and Molly during a 1951 broadcast of their popular radio series of the same name. Or... wait. Part or all of that might be wrong.
No matter! The point is, we have levels to watch now. The worst move for everyone here would be a (B) wave that breaks the prior high before reversing into a (C) wave, but bears have to be very, very cautious if there's a breakout, because if no B-wave materializes, this consolidation/continuation pattern could be entirely complete, and the market might not look back on a breakout. Trade safe.
Posted by PretzelLogic at 4:28 AM