SPDR S&P 500 (SPY)

[gdl]

Usually the third week of January the earnings trend is established.

The other factors have to do with wave structure for both the large wave pattern of whole year and last wave pattern starting in early November. They all show 5 distinct waves.

I even see more exact patterns in this last 5 wave move starting in November. Each up wave took approx. 3 weeks. This last one started 01/03/17. Finally there is an exact count between the last 2 troughs Nov 4th thru Dec 01 took 20 days trading days.
The Dec 01 thru Dec 30th also took 20 trading days.

This last wave from Dec 30th to Jan 30th would be 20 trading days.
If trend still follows last 2 than the bottom of this 5th wave should occur around Jan 30th. I assume the drop would take longer than the last 2 drops which lasted 3 or 4 trading days.
So theoretically if we only need 4 days to drop it would take us to a top on January 24th.

If you look at any chart of SP500 over last 12 months and one for the last 3 months you would notice visual patterns. I broke them down to actual day movement between waves.

I can't believe this last wave would not break lower than 2230.

There is a possibility that we have a 7th wave but even there we should see a correction very soon.