Friday, August 26, 2022

SPX Update

Last update warned that the downside inflection zone had been reached, which was expected to trigger a fourth wave bounce (at the minimum), and as it turns out, I really couldn't have hit the turn much better than that.  SPX bounced almost immediately and has headed toward the confluence that was noted last update:

SPX ran to the gray "4?" that was previously shown on the chart below, corrected lower, then ran up and past it.  If this is a fourth wave, it still has additional room before the invalidation level, due to the depth of the previous decline:

In conclusion, last update's inflection zone warning and call for bear caution proved timely, so I do hope that was helpful for readers.  As discussed last update, the decline would still need another wave down to become impulsive, so for now the market has kept its options open -- though I do continue to suspect that a larger turn/decline has begun, I again have to stress that I cannot back that instinct with anything objective yet.  Trade safe.

No comments:

Post a Comment