SPX breached an 11-week channel (discussed previously) and closed solidly below but on its rising SMA50 and the long-term gray line which connects prior peaks (Chart 1).
The rally since the past March could be complete as a triple zigzag (Chart 1), with (Z) about 50 index points longer than (Y) which is not ideal.
If there is one more upswing (Chart 2 discussed previously), SPX is likely to overlap the green A at 3645.99 first.
Short term, SPX kissed the underside of an EDT and fell (Chart 3). On Friday, a small degree up wave kissed the underside of the gray line and fell.
Reminding you I said in a comment on 18 Dec 2020 that mkt should expend its run by 22 January
ReplyDeletehttps://market-timing-update.blogspot.com/2020/12/mtu-weekend-ed-wedging-again-121820.html
But we still need to see what it does to end of Feb.
On Chart 2 the important thing to note there are 5 small waves down in the drive from around 10 January and from 20 January 2021. Being impulse waves down.
ReplyDeleteThe first one is shown more clearly at the bottom of the chart line.