The last few updates have talked about SPX likely still needing to unwind higher and blah blah blah but let's talk about something interesting today. Over the weekend, a reader requested I update the long-term SPX chart from March 11, and by golly, I thought that was a good idea.
On that chart, I had mentioned (in March) it appeared we might be in an extended fifth higher, whose textbook target was 6380-6450. And while that seemed kind of ludicrous at the time, SPX isn't so far off from those levels now.
So what would happen if we were in that count? Well, we'd head higher into the election (as I mentioned several updates ago), maybe beyond, then we'd peak and head back to ~5120. Then we'd retest the high. Then we'd drop like a rock to ~3810.
So that would be interesting and fun. But let's see how things go in the meantime, as COMPQ is still a little bit of a thorn in bulls' paws:
In conclusion, not much to add to the near-term discussions from the past couple weeks, but it's probably a good time to return focus to the long-term count and keep an eye on how that develops. Trade safe.
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