Friday, January 7, 2022

SPX Update: So Far, So Good

For the entirety of 2022 (ha ha), I've noted that I liked the idea of a B-wave high that would lead to a sharp drop in wave C, and so far the market is doing its best to oblige.

Last update's COMPQ chart proved timely:

And the oft-discussed very-long-term (VLT) trend line has held so far:

In conclusion, bears have done what was expected to keep the idea of a C-wave decline at the forefront.  It's worth noting (as I mention on the first chart) that so far the decline from the ATH is only three waves, so we can't entirely rule out things such as an ending diagonal just yet, and that makes yesterday's low a bit of an inflection point -- but if bears can sustain a breakdown there, then that will keep the C-wave on the front burner.  Trade safe.

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