So Far, So Good (Famous Last Words)

We have broken out of the bullish wedge with some conviction, and I like that. So far, we have only a 3-wave advance, which means some risk still remains, but all 5-wave structures must, by necessity, begin as 3-wave structures.

I see a lot of chatter about not trusting the rally, and I like that, too (I’m scared, myself, lol).

I am going to count this very aggressively for the the time being. The irony here is that after not being bearish enough on the way down, I now run the risk of not being bullish enough on the way up once we finally get what I’ve been calling for. And so, one way I can try to offset that is with a very aggressive count.

We don’t yet have the kind of gap I like to see in a 3rd of 3rd, which inclines me to believe that that still lies ahead of us. To do that, we can count today as a 1-2 of a lower degree (I have it in orange). If we get a big gap and go, that will help this count immensely.

SPY

There is a good chance—I think—of us heading straight to, and possibly even straight through, the bull flag upper rail with few pullbacks.

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