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Friday, October 7, 2022

SPX Update

Last update concluded: 

[Y]esterday's violent rally could be the start of the complex blue 2 on the final chart, but I'd caution against reading too much into a "one day rally." Bulls will need to see some follow-through before getting their hopes up too much.

So far, there has been no follow-through.  To the contrary, there's been a whipsaw back into the megaphone:

 


Same with the lower blue channel boundary:


And, big picture, bulls have not hurdled the key trend line yet:



In conclusion, no real change from last update:  So far, bulls have not proven they have even the near-term ball, and it is still possible that this is all part of an intermediate bear wave.  Regarding the "even bigger picture," it is my belief that this is still a bear market no matter what happens here.  Trade safe.

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