Friday, May 13, 2022

SPX Update: April Target Captured

Yesterday, SPX captured one of its "all roads lead lower" targets from April, but did so with what may have been a b-wave:

(note: black "alt: 5" should be where blue b is)

So the chart above suggests that another low is still needed, but since April's target was captured, it's a little trickier than it might otherwise be:

In conclusion, if yesterday's low was it, then it will rally strongly for a tradeable bounce from here; if the low was a b-wave, then a rally toward 3995-4015 wouldn't be unusual (though it does not need to reach that zone).  I'm leaning toward the b-wave low (meaning there will be a reversal back to retest/break the low) for now, but f SPX sustains a breakout above 4015, then the b-wave will become suspect.  Trade safe.

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