Friday, April 5, 2019

SPX Update: All Roads Still Point Higher -- for Now

Short and sweet today, as there's not much to add.  Last update noted that a complex correction was possible (meaning at best, bears could hope for a short break but all roads still pointed higher over the larger view), but that we'd watch for impulsive declines.  On Wednesday, we spotted an impulsive decline, but as I warned on the forum, it appeared that it could be wave C of an expanded flat (which is the one case where an impulsive decline is not the start of the correction, but the END of the correction).  Futures this morning are indicating that's exactly what it was.

Now, that pretty much ALWAYS leaves options for a more complex correction (shown on the chart below in black) -- but even if that materializes, all roads ultimately still appear pointed higher:

In conclusion, it appears now that we either head higher directly in a micro third wave off Wednesday's low, or we correct a little more first and THEN head higher.  In other words, not much for bears in the charts at the moment, though we MIGHT approach the end of Bull 5 in the next few sessions (still best to await impulsive declines).  Trade safe.

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