$SPX Evening Update

Carrying the thought from yesterday forward. I still think it’s the interpretation I want to have here.

I continue to think that since we did not lose our red channel via a gap down that we are likely to revisit it. I also think we have only completed 3 waves down of a 5-wave impulse wave.

And so, I think we still need minuette (orange) 4 and 5 of minute (blue) 1, and then we will need an A-B-C of some kind for minute (blue) 2.

The typical retracement for a wave 4 is a 38.2% retracement of the length of wave 3, which is 3980.11 (noted on the chart below). However, we may go even as high as the area of prior consolidation (also noted by the box above us).

SPX

Today, instead of gapping over the green trend line that we closed at yesterday, we ground our way through it, but have stayed above it ever since. I believe all the chop we were in today was two legs of a 3-leg move, and I would like to see the red c tomorrow.

Regardless of what I am to do with the larger structure on futures (here), locally, I like what I see.

We are coiling under the trend line with a bullish divergence on the RSI. A good chance (I think) that we will pop the trend line because of this.

ES


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