We Need to Be Cautious About Expecting Further Correction Here

Looking at all of the indices together, we need to be cautious about expecting a move up, followed by another swoon (expectation for that was noted here). There are signs that the correction may be over now. Some signs:

All we need are three wave moves. $QQQ has exactly that, in the wedge. It is common for these to complete a low, then a lower low, then it’s rippy time. So, the green 4 I am expecting might be in now, not at another low. We’ll know because we’ll break out of this wedge.

QQQ

Likewise on $SPY, wave “fours” often take the form of lowercase “h’s” and we have exactly that now because of the additional depth today. So green 4 could very well be here, not over there.

SPY

And on $IWM, we needed to hit the lower end of that box and we have. That little spike to the green EMA may very well have been the purple b wave. The whole structure here looks like a nice 3-wave move, plenty of depth, very possibly done.

IWM

As a result, I am reducing my expectations for too much more sideways action. The probability is increasing that we just go up from here.

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