E-Wave for the S&P 500 Index

[RCKS]

"....SPX has now confirmed the expanded flat from December 8 on a technical basis, if not yet on an emotionally-satisfying basis (new highs would be more emotionally satisfying!)....."

http://www.pretzelcharts.com/

On Monday, I noted that the opening gap down could still land inside the green melt-up channel, and that if bears couldn't break down below that channel, then the gap down wouldn't mean anything.

They didn't even come close.



COMPQ has continued rallying and now reached a "sneaky" potential resistance zone:



In conclusion, SPX has now confirmed the expanded flat from December 8 on a technical basis, if not yet on an emotionally-satisfying basis (new highs would be more emotionally satisfying!). It's very close and ideally will make it over, though the rally is a bit extended at this point, so we could see a pause and correction soon. If that happens at all, it would currently be expected to be just that -- a "pause" (not the end) -- but if that develops into an impulse down, then we'll look at the implications as needed. Trade safe.