Wednesday, August 18, 2021

SPX Update: June 7 4480 (+) Target Zone Finally Captured

Since last update, SPX made a new ATH and officially captured the 4480 target (to the point) from June 7 -- before reversing hard.  The jury is still out as to whether that's just a one-off reaction to the lowest point in the target zone (this first zone stretches as high as 4550).  Nothing informative has happened at the intermediate level yet.

Near-term, the picture is similar:  Nothing informative has happened yet.  The more complex iv is still on the table, but so far, it appears to be only three waves down from the ATH.

In conclusion, while there was an impressive reactionary decline in response to the capture of the lowest end of the target zone, the next thing bears would need to do is sustain a break of yesterday's low.  If they can't do that, because the decline appears to be three down, it could be a simple ABC.  For the moment, we'll have to see how the market chooses to resolve this before the picture clarifies.  Trade safe.

1 comment:

  1. Today was a failed rally multiple times. Big drop expected this Friday. 100 plus point drop on SPX.
    Stay tuned. the market makes it almost impossible to play the gyrations but a swoon tomorrow should set up for one glorious rally right after.