Last update projected that SPX still needed [at least] one more micro fifth to new ATHs, and we got that... now things start to get interesting again, for reasons discussed on the first chart:
INDU is also within its next inflection zone (as we suspected might happen):
Bigger picture, SPX once again stalled at the long-term trend line. We'll see if it wants to make another run at it or not:
NYA is also worth keeping in sight, because when it sustains a break out or break down, that may offer clues to what's coming in other indices. A sustained breakout could hint at an extended fifth in SPX. A sustained breakdown would be less informative, but could still lead to a relatively fast move, if it follows the past performance of similar patterns.
In conclusion, this is our first of several possible Wave 5 inflection zones -- and the fact that there will be several of these is one of the reasons we have to combine that with an impulsive decline before we have a better signal from the market. I say this because fifth wave extensions (were that to develop) and just extend and extend and extend after a brief pause at each inflection. Thus, the next step for bulls would be to get (and stay) back inside the green trend channel, while bears would like to see a rejection there, followed by a sustained break of the ~4327 zone. Trade safe.
No comments:
Post a Comment