Monday, February 4, 2019

SPX Update: Nobody Likes This Market

Friday was another choppy day, high in noise and low in information from the market.  As a result, I still have little to add since Thursday's upside target capture.  There is a possibility that we can count five waves up in at least one degree of trend, though it's not clear to me if another wave up is required to complete that.

We'll watch the next couple sessions carefully to see if there are any signs of a downward correction.

In conclusion, this remains a challenging market for the time being.  At some point, we will get a larger downward correction, which will then allow us (hopefully) to anticipate several things:

1.  How far that correction might run.
2.  Since we'll have a completed upwards wave to examine, that will allow us to determine exactly what the market is trying to accomplish in the bigger picture, which will in turn tell us...
3.  whether to expect further upside after that downwards correction completes, and...
4.  if so, how much more upside.

In other words, things should clear up in time; ideally, significantly so.  Trade safe.

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