SPX: Follow Up of the Short Term EWP
ANOTHER DAY ANOTHER NEW ALL TIME HIGH
Despite short term technical indicators remain overbought buyers are disrespectful that bulls cannot maintain for much longer winning “pases” (One-handed manoeuvres in bullfighting).
However, neither today we have any indication that the up leg from the April 18 low is over:
- Yesterday´s candlestick remains bullish and besides there is no nearby critical pivot support that could trigger sell stops. (The obvious one is at 1597)
- In addition the internal structure of the advance from the April 18 low das not allow to have any confident count therefore atm it is like tossing a coin or guessing when the EWP will be done.
So far I have been considering two options either a Zig Zag (Red Count) or a Double Zig Zag (Blue count). Since the assumed wave (C) lacks of an impulsive sequence, in my opinion the Double Zig Zag is becoming the front-runner option. If this is the case the pattern still needs probably a shallow pullback wave (B) (With a bottom no lower than the rising trend line in force since the April 18 low) followed by the last wave (Y) up.
Maybe the upper trend line of the channel which today stands at 1631 +/- will temporarily deter further advance.
Even though the pattern of the current up leg is not clear I remain confident that price is not establishing any major top. I still expect that the next meaningful pullback will be bought, since it will be either a wave (B) or a wave (II) of an Ending Diagonal.
As a reminder below I show you again the two potential counts that I am considering viable for the advance from the November lows:
1. Triple Zig Zag
2. Double Zig Zag
Tomorrow I will not be able to publish the daily update.