Wednesday, January 4, 2017
SPX Update: 2017
Well, 2017 is finally upon us, like a thing that falls upon another thing or something (writer's note: go back and edit this to a more poetic image if there's time). Interesting to note that we're now five full years past the Apocalypse that was supposed to occur in 2012 (according to someone's interpretation of the Mayan calendar), and all we really got out of it was a few crummy movies.
SPX was clearly excited about 2017, and opened the New Year with a gap up. One potential near-term path is discussed below, along with some additional levels and where they may lead:
The black (A)/(B)/(C) shown above is still just a hunch, and may or may not come to pass -- but I think it would be a nice confuser and a fitting way to get bears excited and shake some bulls off the rally before it continues higher.
Still no change to the big picture:
In conclusion, near-term, keep in mind that SPX is currently within an established trading range, which means predicting its near-term behavior becomes more difficult. Trading ranges have the effect of "loosening" all the patterns that show up inside the boundaries of that range, so those patterns rarely lead where they would typically be expected to lead. Bigger picture, there's still no material change. Trade safe.
Posted by PretzelLogic at 4:32 AM