Above is the chart that I left readers with. As you can see price has now reached a new high that may have completed the corrective pattern that I spoke of.
As of the time of this post, the market seems to have made a small 5 wave decline from the top. There are two confluent zones at 1326 and 1327.75 that I will be watching for possible areas to sell into. Should the market continue to subdivide and break below 1321.75, before hitting the described targets, the possibility exists that a more complex correction may be unfolding or the current wave is not completed.
Either way it appears the market is heading lower.
More complex correction seems likely. Possibly an expanded flat w.ii to 1327.75 -1328 as the higher probability target. Break below 1321.5 negate expanded flat interpretation. Let's see.
ReplyDeleteDisappointing in that yesterdays close that took out the highs. I never got a reversal signal at 1328. Interestingly, the CASH ($SPX) didn't. Futures can often be manipulated, as I believe in this case was a stop running exercise before taking the market lower.
ReplyDeleteIn the ON session, prices have collapsed, which would be more in line with $SPX and most likely a gap down open.