Update on $SPY

Despite over a week of relentless selling, I find it disconcerting that $SPY has not yet even breached the 61.8% retracement of the prior advance (the bottom of the orange box we are now in).

SPY

In addition to that, the whole “look” of the selloff seems corrective, rather than impulsive (as I have it labeled, it seems to me to be composed of two distinct halves, not three parts). There is a possibility that this is a 2. I am only making an observation in this post, and my only call right now is for a rally to the orange box above us. As we move in that direction, I will monitor the structure to see if there is potential for much higher prices. If it is a 2, as I am beginning to believe it may be (so long as we don’t go significantly lower from here before the big bounce), we may be headed to ~$470 for the 3.

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