There are two charts that are really worth looking at today. The first is COMPQ, which has now bounced all the way from its downside inflection zone to its upside inflection zone -- both of which were drawn on this chart more than a month ago:
The next chart of major interest is SPX. I've illustrated on this chart that the rally can be counted as an impulse. As long time readers know, usually when I see an impulse, I'm fairly comfortable calling it out as such and drawing conclusions from it -- but in this case, I'm not at all confident in it, because the preceding pattern is so... odd. Nevertheless, it's there, and my job is to share what I see. So here it is:
In conclusion, COMPQ has rallied all the way up to its upside inflection, and SPX is sporting a potentially complete or nearly complete wave (impulse?) -- so we should at least be alert to the potential for a turn lower from this general zone. In a bear's perfect world, it would be the start of the next major wave down -- but in a bull's perfect world, it would just be wave (2)/B down, and hence only a correction. We'll watch carefully to see what develops from here. Trade safe.
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