Friday, January 10, 2020

SPX Update

Last update, I thought we might see a short-lived correction, but that failed to materialize.  It's rare that I completely whiff a near-term call like that, but it does happen, and I whiffed that one.  Apparently, the market felt that the work done in the futures was enough.  Longer-term, we were still expecting higher prices, so no change to the big picture:

Near-term, the blue channel is now the first zone to watch:

In conclusion (as I've written in the past) during bull waves, surprises tend to be to the upside -- and that's what happened on Wednesday.  Long-term, there's no change, and the bull market likely still needs at least one (if not two or more) more large fourth wave correction(s) and larger fifth wave(s) higher before we can give much thought to anything but the larger uptrend continuing.  Near-term, we can't yet rule out an expanded flat, so a near-term correction could still materialize after all.  Trade safe.

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