Monday, August 2, 2021

SPX Update: The Other Side

Here's something you won't hear me say too often:  Last update suggested "complacency," and that seems to have worked, with Friday's opening low (cited as an inflection point in the last update) being roughly the end of the day's drop, and with today's futures suggesting a gap up toward the prior high.  That high will be the inflection for a couple versions of a more complex correction.  If SPX were to turn into a more complex EXPANDED FLAT, then below is one option:

Not shown:  If it wants to turn into a WXY, then it could stall shy of the high and break below Friday's low.

Big picture, I highlighted the old target zone (since some seem to have missed it), and discuss a seemingly-crazy technical chart potential in the event of a full-bore, "best case" (for bulls) fifth wave extension.

In conclusion, the charts say it all.  Trade safe.

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