Saturday, January 15, 2022

MTU Weekend Ed - Wedge Details and Morphing (1/14/22 close)

In out 1/7/22 close update - 

"In the context of a triple zigzag - see last weekend's update on the longer term structure -  there are now enough structure for a high, but also room for further more development, including a potential EDT from the October low in SPX. "

As of 1/14/22 close - 

Chart 1 updates details on a potential EDT from the October low in SPX.  Internal structure of the A of the wedge is ambiguous, which raises questions about the validity of an EDT.   The Dow made a lower low for the month this past week and SPX did not. Chart 1 also shows the invalidation and upside levels.

If the wedge gets invalidated,  a major high could be in (at the red H) in the context of a triple zigzag.  

Chart 2 updates the triple zigzag. 

Note that this triple zigzag has room to extend in time and price.  It's possible that the second (X) is not the October 2021 low [blue (X)] but a potential low in Feb/Mar 2022 [green (X) potentially testing SMA200]. In that scenario, SPX could be in the middle of this flat-like (or even triangle) structure.



 

 

 

 

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