S&P 500: 3 Structures, 3 Targets

In a follow up to this morning’s post, I want to discuss the potential here over the coming weeks.

Those three structures discussed each provide separate targets. Furthermore, if I am correct about a major low being put in, we would expect a powerful impulse wave coming up and out of that low. I believe minor (green) 1 is done, and green 2 is finishing today.

If I am right, we should be entering minor (green) 3. That itself will be a 5-wave impulse (the 5 blue waves labelled below). That requires 3 peaks. And it’s possible that the three targets generated by the 3 structures is where each wave will head toward.

So, it’s possible for minute (blue) 1 to be especially big, satisfying the target for the inverse head and shoulders (lowest orange box), followed by minute (blue) 3 reaching the target for the bullish wedge (middle orange box), followed by minute (blue) 5 heading to (or through) the bull flag rail (upper orange box).


I’m sorry to have to be like this, but until these structures fail, I have to remain open to better than expected outcomes.

The only worse-case scenario I can come up with for the moment is a variation of the bullish wedge that allows for one more lower low.

I have been looking at it as an ending diagonal, with all 5-waves complete, like this:


It is also possible that it is this:


But even in this case, I would continue to be looking to enter long, as this should still be a low of very great significance.

Note: When articles are first posted, most of them are made available only to my Patreon supporters (I do try to publish some public posts on occasion). Over time (usually after a period of a few weeks or so), I make all of the work public. To gain access to my work when it is produced, please consider becoming a patron. More information may be found on my About page and on my Patreon page. In a nutshell, patrons of any denomination (you get to pick the amount) will be able to read my weekend analyses, Tier 1 members ($20/mo.) get access to all of the articles I write, and Tier 2 members ($35/mo.) get access to those, plus counts on other instruments and my Discord chatroom.

Leave a Reply

Your email address will not be published. Required fields are marked *