|An Australian with a Vickers|
Friday we retraced .382 of the rally up from 1972 SPX -- clear wave 4 territory. But if this is a bearish terminal wedge pattern, we have already overlapped wave 1 (which is permitted) and could go a little deeper into next week. There is plenty of room on the chart. From this POV, the lower pink trendline is a real line in the sand, it must not be crossed.
The good news this week was the top Bollinger Band peaking on the SPX and starting to come in. A touch of it would set up the next cycle short, and possibly the return of the Bear as well.
Yes, of course the crude oil crash means deflationary hell -- reversion to reality -- is dead ahead of us.