SPX has now bounced in ABC fashion to my target of 1380+/- and the previous degree wave 4 target zone at 1378-1387 where other resistance resides. I think SPX will pull back shortly. However, some people are counting a completed 5 waves for 1422-->1357 and, even if it is only 3 waves as I've proposed, that could be the end of the first zigzag rather than needing a 4-5 to finish. So, we are left with the possibility that SPX is retracing 1422 now.
If we assume, SPX still needs a 5th wave down, then SPX should top in the 1378-1387 zone and retest 1357 at a minimum with 1340ish possible. If we assume SPX is retracing 1422 as part of a wave X or wave 2, it should reach 1380-1400 which approximates a 38-62% Fib range and then retest 1357 at a minimum and likely reach 1340 or even 1290-1320 as I've projected. So, I think building a short position in the 1380s has a very good risk/reward.
If SPX surpasses 1400 particularly closing above 1398, it will have filled a gap, broken a psychological level and likely allowed Apple and other high-flyers to escape the parabolic collapse temporarily. And, there is the possiblity that a 1422-->1357 ABC is all we get or is part of a flat pattern. And, we could even be forming an ugly expanding ending triangle to complete at 1420-1430. So, 1400ish is a good spot to get out of any short position temporarily. My cycle work projected a low today +/- a few days, so it is unclear whether the low was Tuesday (conditions were certainly oversold enough compared to recent months) or may still lie ahead on Fri/Mon/Tues. However, since I don't expect another low until May 3ish and since next week is OPEX, I am still leaning towards one more low in the next couple days whether that completes a 5th wave or double ZZ before SPX rallies for a week and rolls over again. If SPX can get below 1357 again, the odds increase that it will not retest 1400-1422 until maybe the bounce from May 3 or May 18. I'll be watching Apple for clues too since its parabola will collapse very soon. Good luck.
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