Friday, March 12, 2021

SPX Update

Yesterday, SPX made a new ATH, which means the market did indeed form the most rare pattern at this degree -- the ultra-rare triple-three (WXYXZ).  I don't think I've seen more than a dozen triple threes in the past two decades, and certainly not at this degree.

This also means that my original read of Feb. 17 of a b-wave at the high was correct -- but due to the rarity of the subsequent pattern, the market sure made me second guess that first read.

So where are we now?  There are two possibilities:

1.  Yesterday's new high was/is part of a fifth wave (standard or extended; bulls would need to keep making new ATHs for this iteration of an extended fifth to stay on the table, obviously).

2.  Yesterday's high was wave C of a complex flat (discussed previously).

In conclusion, it's enough to be aware of the options at this stage; we'll need a bit more from the market to parse them.  Trade safe.

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