Monday, July 18, 2022

SPX and BKX: Nimble It Was

Last update warned traders to "stay nimble," which proved timely, as SPX ran higher for much of Friday's session.  As discussed (in advance) in that update, this leaves the appearance of an imperfect low (an incomplete pattern) in BKX:

SPX discusses one common target, but I want to stress that it's not the only possible target zone.  The point of a complex correction is to be, well, complex.  These types of corrections are "supposed to be" unpredictable (the market's intention is to get everyone wrong-footed), so sometimes complex corrections will string together more than one complex wave, which can indeed make them unpredictable.

In conclusion, no real change from last update, except to note that the complex correction appears to be upon us.  For now, we'll focus on the most common target zone -- if SPX wants a "running flat," it could fall a little short of that zone.  In the event it exceeds that zone, we'll discuss further options.  Trade safe.

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