Is There Anything We Can Do For the Bulls?

As a matter of fact, there is. Let’s review the long-term bullish count.

The bullish count has us having already completed a Yellow a-b-c, with c equalling 61.8% of a, like this:

SPX

Strictly-speaking, that has held, but notice the poke below that fib.

There are other valid ways we may count this structure, and an interesting feature emerges if we count it like this:

SPX

A much better touch. In major corrections, equality of legs is probably the best, the gold standard, really.

And recall that I am looking for 5-waves down in this red channel. Because today was a nice, complete “five waves down,” there isn’t a whole lot stopping us from doing this:

SPX

Truncations are nice because they actually happen more often than people are willing to admit, and they cause a lot of people to miss bottoms (and tops). Always looking for just one more low (and not getting it), and then looking for just one more high (and then not getting that, either).

Counting it this way would make today the “technical low.” So because I can’t rule this out, review the Green A-B-C I think is coming (here) for the anticipated Orange “2.” I am long here already for what I think will be Green A. I will step aside when I expect Green B. But I will attempt to go long again for Green C because if this actually is a giant bullish wedge complete (here), then this will be no Green A-B-C, but rather it will quickly become this:

SPX

It will become a Green 1-2-then 3. Imagine rallying into the CPI print with everyone piling in short thinking it’s a 3-waves complete (A-B-C up for a “2”), and expecting a repeat of September 13th? Only to have the third wave gap up against them?

Possible. And ruthless.

So the bulls do have something here.


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