In SPX, the first meaningful support zone remains the lower blue channel boundary:
Note that SPX is reversing from the median blue resistance line, so this does have at least the potential to turn into a correction. I have to admit, this is one of the goofiest markets I've seen in ~25+ years of trading, and it's hard to wrap one's head around that SPX is up nearly 2000 points just since April. So my instinct is that this may indeed be the long-awaited high degree final extended fifth that I've talked about on and off since like 2017. It's certainly been acting like the fifth wave extension of a fifth wave extension.
So, will the market form at least a small correction here? Well, for once it's possible, which is something I don't think I've said for a few weeks. So that's something and worth keeping an eye on. But at the same time, given how goofy this market has been and how absolute muck the near-term pattern is, I wouldn't be surprised to see it rally right back up, either. I guess that means the chances of at least a small correction are, if nothing else, higher than they've been in weeks. We'll see how the market handles this. Trade safe.
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