Friday, April 1, 2022

SPX Update: April Fool's?

Last update noted that Red 5 could end at any time, and it ended right there.  Let's get right to the charts.  First up is the straightforward C-wave we've been discussing for a while, but after that, I'm going to show an alternate count:

I noted back on March 23 that this zone would be an inflection point for more complex options, so the next chart shows one option the market has if, instead of the C-wave, it wants to get really wild:

Big picture, no change since December:

In conclusion, the market has followed the preferred count right up into the anticipated inflection zone.  It does have options here, but for now, we'll presume it wants the simplest one.  That said, as the second chart shows, it's not a bad idea for traders to stay on their toes near this (or any) inflection zone.  Trade safe.

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