As we can see, there are three pretty clear waves down from the recent all-time high, and it's interesting how perfectly that drop tested the upper boundary of the red triangle (which, if nothing else, goes even further to confirm that pattern as the right read). So the question now is whether that's it for the correction, since there are enough waves down for a completed correction.
Next, is the bigger picture SPX chart, which captured its February upside target:
So, if we put these two charts together, we can see that there are enough waves for a completed correction (the bear option might be a bear nest or similar) -- however, in the event bulls do manage a new all-time-high, they do have blue overhead resistance with which to contend. Trade safe.
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