S&P 500 ~ market completes triangle and thrust higher in an impulse five waves...



Yesterday we posted charts of the SPX showing the short term impulse rally underway now, along with a look at what has taken place over the past year.

We label the rally from the December low to show a "double three" (w-x-y) that is currently finishing wave (c) of [y]. This will also complete either wave D of the much larger "expanding triangle" (that we've been updating for most of this year) or wave B of a large "flat." If the market traces out a "flat" it will be in the form of a "running" or "expanding" which will be determined once it's underway.

Today we are showing another way to count the rally from last December which is our primary count. It is hard to ignore, visually, that the sideways grind since May has the look of a "running triangle" formation. 

Under the "triangle" interpretation the rally from December would count as a "zig-zag" with five waves of [a]....divided by the "running triangle" for wave [b]. The "triangle" sub-divides at the smaller degree labeled (a)-(b)-(c)-(d)-(e).

Per the rules of a "triangle" the market did thrust higher in an impulse move following the end of wave (e).

This five waves, when complete, will form wave [c] of the "zig-zag" which will be followed by a trend change from up to down. Yesterdays high can be counted as a complete five while price also hit several trend-lines and a key 61.8% relationship within the structure...all shown on the chart.  

For now, price can currently be in a small degree wave four to be followed by a push higher to complete five of [c]. Once the final sub-waves of [c] is complete...if not already...price will reverse sharply and head back to the area of the wave (e) of the "triangle" low. From there we should see much lower prices to follow!!! 

Follow the Trend
and
"Trade Safe"


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