SPX Update: Witty Yet Germain Update Title Goes Here

Last update suggested that SPX might need another near-term wave down, and that wave down then materialized later in that session.  That now creates the appearance of a three-wave structure from the most recent high to the most recent low.  Three wave structures are generally corrective in nature (for example, an ABC is three waves -- and, of course, those waves are labeled as Wave A, Wave B, and Wave O, for "OMG this market!"  Wait,  I mean Waves A, B, and C, for "Crikey, this market!")

Let's take a look at the most recent SPX chart:

Ha ha, just a little technical analyst humor there, designed to elicit angry responses from the type of people who are offended by everything they read on Twitter.  (Now I just need to post this on Twitter, which I keep meaning to use but almost never do.)

Let's take a look at the real chart now, which, in many places, looks basically the same as the one above.  We can see the new blue channel has held the recent decline:

In conclusion, there appears to be a three wave structure heading down from 2813 to the most recent low, which suggests that the rally isn't over yet.  Bears could get a more complex correction, which would test the high then dip below that low, to work with, but it would likely still be "just a correction" (not a prediction, by the way, just an option to be aware of).  Trade safe.