Wednesday, October 10, 2018

SPX Update: Still Looks Good for Bears

No change from the last update:  It still appears bears have control for now.  That can always change, of course, but for the moment it appears the most reasonable question is whether bulls can muster a bit more of a reaction bounce before the next leg down kicks off.  There are enough waves for a complete corrective rally already, if the market wants:

In conclusion, bears continue to hold the edge for now.  If B/2 completed yesterday, then we would expect SPX to head toward a first target in the mid-2820's, with a shot at a second target in the mid-2780's.  Those target levels would change (higher) if SPX manages to bounce higher for a more complex corrective B/2.  Continue to keep in mind that in the event the much larger B-wave completed at the recent all-time-high (still uncertain), then SPX is ultimately headed toward the low 2500's before it's said and done.  Trade safe.

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