Monday, August 15, 2022

SPX Update, and a Deadhead Sticker on a Cadillac

Last update discussed that the current rally is correcting the entire decline from the all-time high, and thus of the same wave degree as the first leg down.  On Friday, SPX rallied again, but did close near a zone that, based on the structure of the prior decline wave, could provide horizontal resistance, so we'll see how it reacts to that.  Looking at the trend picture, the first thing bears need to do is break the rally channel:

Bigger picture, Friday's high was between the 50 and 61.8 Fibs:

In conclusion, there's not much to add to Friday's update beyond that.

On a lighter note:  Yesterday, I ended up behind a car that had a "Who Is John Galt?" license plate frame -- what made me laugh out loud was that the car was a Toyota Prius hybrid.  This struck me as the near-perfect inverse of Don Henley's famous line: "Out on the road today, I saw a Deadhead sticker on a Cadillac."  Two symbols that tacitly represent ideologies that don't really mesh together.

Anyway, that's all I've got for today.  Trade safe!

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