Thursday, April 5, 2018

SPX Update: No Material Change

Today's update will be short and sweet, because it appears that the expanded flat we discussed last update is underway:

[Please note typo!  "Textbook target" should read 2675-96, not 2575-96!)

The textbook expectations for this move are as shown in the prior update: 

1.  That the rally continue to at least 2675-96;
2.  That the move then reverse and head below 2585 (traditionally below 2553, but that's not required). 

Note that the rally could run higher, and/or that the subsequent low could come at much lower prices if it so chooses, so we have to track this in real-time to see whether this will develop as a "textbook" pattern, or as some variation thereof.  Also worth a mention that there's an alternate, more bearish flat that could peak between 2662 and 2674.

Beyond that, nothing to add to the prior update.  Trade safe.

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