Wednesday, March 6, 2019

SPX and INDU: New Charts!

On Monday, the market did something different:  It traded as if it was open, and there were actual live people placing trades.  If you can imagine.  In honor of the market doing something different, I've drawn up a (drumroll please) NEW CHART!

And an edumacashunal chart (to further your continuing edumacashun), at that, which depicts the potential of a classic "expanded flat" pattern.  The most recent high is far from being a "clean" five wave structure (b-waves highs are corrective, not impulsive), which is one of the reasons we do have to be alert to this potential:

On the flip side, bulls do need to get back above the black trend line:

In conclusion, bears finally have an impulsive decline, BUT it's possible that's wave C of an expanded flat.  The most recent low (2767) is thus the first important dividing line.  Trade safe.

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