$SPX Update

I haven’t much to add. Among the options discussed yesterday (here), I will focus on some bullish outcomes. The bearish option is of course alive and well, and if we drop, I will try to dive into it, but I still prefer the bullish scenarios for the time being.

It’s possible that blue 2 is already in, in which case we can just keep going up from here.

But, it’s also possible that we’re in a more protracted blue 2 now. We may need another drop to complete it, and if we drop into tomorrow’s close and then rally powerfully after the CPI announcement, it could look like this:


If that is too predictable, it’s also possible that we’re only partway through orange “b” of blue 2, and we can consolidate more, rally into tomorrow’s close, and still get a drop after the CPI print, but then promptly reverse it early in Thursday’s session, like this:


So, several things can happen, but so long as the lows from the earliest days of the year hold, I would like to retain a bullish bias.

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