The two forks I’ve been drawing lately are bullish and bearish in their overall direction of travel -- one pointing up and one pointing down. So there is an overall choice for both possible directions of the market. Each of the two forks are also bullish and bearish at a smaller scale within each fork -- as price can go both up and down while moving from one tine to the other.
Today I changed their anchor points a little to better reflect market changes since the last drawing, and I also changed their colors so that they stand out better against all the other colors on the chart.
I believe each of these forks follow Andrew’s rules, though I don’t consider that necessary because I know a trader who is quite good at drawing forks and doesn’t follow any of Andrew’s rules in terms of picking the anchor of the handle.
Regarding any chart pattern, I firmly believe that they must adhere to historical Sup/Res levels as determined by statistical collection of historical data. That matters very little right now since $SPX is at all-time highs.
Using all of that, price has the option of breaking above the top yellow SR line and following the blue fork higher, or price can stay within the horizontal channel and, in the short term, follow the orange fork downward.
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