Another $SPX Update

It is possible to count the S&P as five waves down, perhaps like this:


If so, we may still get a retracement for an orange 2 as discussed this morning (here) that tries to go and challenge that gap. I have closed a few more puts and added a few more calls just in case this happens.

I will note that we are approaching equality of legs (1:1), and IF this is only a corrective pullback, that’s where one would expect it to end. Lots of people see that equality, and so perhaps they buy, which causes the orange 2. But I will also note that the consolidation we had occurred right over where the 89-week SMA comes through here. If having lost that, we drop very sharply, it’s also possible that the consolidation we saw was the wave 2, but I don’t know that yet.

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