Wednesday, March 30, 2022

SPX Update: Red 5, Standing By

The rally in SPX has continued virtually unabated, so I'm glad we've maintained our bullish stance.  Yesterday, SPX also captured the 4595 target, first mentioned on February 25:

On the hourly chart, the pattern requires that we at least consider the possibility that red 4 was truncated.  The other option, which would be more bullish, would be that we haven't even seen red 4 yet.  For now, I'm going to favor the former option, but will remain open to the market's input, as always.

In conclusion, ideally, we'd see the larger blue 4 show up resonably soon, but do keep in mind that blue 3/c is something of an inflection point (in the event of more complex patterns than the simple blue C wave as shown above), so a larger correction isn't entirely outside the realm of possibility.  Trade safe.

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