The chart of the percent of stocks above their 50 day Moving Average is still bearish and will stay that way until it crosses above the blue 20 day MA. It still has room to run to the downside before reaching over-sold conditions.
Here are the two of the three ways that the SPX can be labeled, thanks to the flash crash there is more then one decent way to label where the 1st wave down truly ended, and that brings up the problem on trying to get the 2nd wave labeled properly. The gray count is the only bullish option, and that is a short-term bullish option, a delay of the eventual sell-off for another month as the "C" wave of 2 up plays out.
The green channel line, where the SPX is currently bumping its head is VERY important in determining how things will play out in the next month, a break above that channel line opens the door for the "C" wave to head towards 1131, It must hold for the iii of 3 count to stay valid. This current i-ii (blue) wave combo needs to stay smaller in both terms of price and time because it is one degree smaller then the previous 1-2 (blue),and it is already near its maximum now, any more upside would upset that balance invalidating the whole count (Blue) as I have it labeled.
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