If the bounce at 1425 terminated a wave 4 in the blue channel (see chart), then we're looking for a 5th wave, so why not propose here a terminal pattern, either an ending-diagonal or an expanding wedge?
I'll sketch the ending-diagonal for now, looking for a pullback to support at 1440 tomorrow. I'll buy that dip.
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| SPX 10-16 |
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| 60D |
2 comments:
Or ... we continue to drift like this, at 5 to 8 SPX points per day, on low volume, falling VIX, zero worry, until we reach our target next week.
Afterwards, we can look for a sideways portion of this last rally and call it "wave four".
Patience required, you know the drill.
I don't see how anything of any consequence (up or down) occurs until after the election. Twenty to twenty-five S&P points higher? Meh. Of course I am a strong believer in the powers of manipulation (for now).
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