Monday, October 16, 2017

SPX Update: Fun with Chop

In an upcoming update (probably Wednesday, or Friday at the latest), we're going to look at some interesting facts about the current bull market, possibly accompanied by blistering sarcasm.

But today we're just going to stick to the charts.

Bigger picture, there's no change:

Near term, this complex pattern hasn't gotten any less complex.  We're either in the middle of an expanded flat and will chop around a bit more before moving higher again, or the rally is getting ready to launch in a new nested third wave.  I don't see anything that makes me think of a major top just yet, although there's an off-chance at an ending diagonal terminal pattern (which would still need new highs), but that looks like an underdog at the moment.

In conclusion, they're still keeping the near-term messy, but neither of the leading options looks particularly bearish.   So the bigger picture still looks pointed higher for the time being, though possibly after a smallish near-term correction.  Trade safe.

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