E-Wave for the S&P 500 Index

[RCKS]

".....this is a "fresh" breakout, which means its subject to reversals for a time -- so we can't just assume bulls will run with it and stop watching. But at the moment, it does look slightly more likely that the breakout may be real, so if bulls can hold this, then they could resume the upward march....."

http://www.pretzelcharts.com/

On August 8, I wrote: "But as long as those zones hold, then bulls are clear for the uptrend to continue at least a bit longer." And yesterday, SPX broke out to a new all-time high. Prior to August 8, I was a bit concerned because the market had entered an inflection zone, and we did get a modest correction out of that zone -- but here's what you need to understand now:

1. We are technically still inside that inflection zone, so we can't entirely rule out a pending reversal.
2. But if this breakout continues THROUGH that zone, then bulls could trigger another "all clear" for themselves.
3. Right now, it looks slightly more likely that bulls will make it through this zone. Not a given, but I personally wouldn't bet the farm on a reversal yet.

First up is SPX's blue channel chart -- as long as bulls hold that channel, they have the ball:



Next is SPX's intermediate chart. Here, we see that as of this moment, SPX is ABOVE the red trend line. Here again, as long as they hold that breakout, they have the ball:



In conclusion, this is a "fresh" breakout, which means its subject to reversals for a time -- so we can't just assume bulls will run with it and stop watching. But at the moment, it does look slightly more likely that the breakout may be real, so if bulls can hold this, then they could resume the upward march. Trade safe.