We’ve been tracking the current Minor 2 downtrend as three Minute waves and have been looking for the Minute c completion of that pattern.
This week gave us the answer.
After the decline on Monday to 2729, which was right in range of our support target at the 2731 pivot, SPX abruptly reversed and achieved a significant rally of 156 pts to a high 0f 2885 by early Friday.
The strength of this rally was sufficient to trigger our WROC signal, which places high probability that a new uptrend is underway.
Consequently, we upgraded the medium term status and added the tentative marking for a potential Minor 2 bottom.
Although, some near term caution is advised since the rally has already reached logical resistance at the 2884 pivot and the Minute b rally high 2892.
Medium term RSI is overbought as well.
We are now watching the short term waves to see if this rally can impulse in a sustainable fashion.
As mentioned, Minor 2 most likely completed at 2729.
We have Minute a at 2801 and Minute b at 2892.
Minute a and Minute c completed with similar size and structure, which resulted in a fairly symmetrical three pattern.
As you can see from the 60 min chart, the pivots have done well, with Minor 1, Minute a, Minute b and Minor 2 all having turning points within those ranges.
From 2729, the SPX rallied to 2885 without any meaningful pullback.
After such a sizeable move, it would not be unexpected to get a significant pullback in the near term.
So far, our short term tracking can count only one wave up to 2885, so we’ll need more price action to assess this rally further.
Short term support is at the 2858 and 2835 pivots.
Resistance is at the 2884 and 2929 pivots.
Short term RSI got extremely overbought at the high, then pulled back within the neutral zone by the close.
We’ve been tracking the current Minor 2 downtrend as three Minute waves and have been looking for the Minute c completion of that pattern.
This week gave us the answer.
After the decline on Monday to 2729, which was right in range of our support target at the 2731 pivot, SPX abruptly reversed and achieved a significant rally of 156 pts to a high 0f 2885 by early Friday.
The strength of this rally was sufficient to trigger our WROC signal, which places high probability that a new uptrend is underway.
Consequently, we upgraded the medium term status and added the tentative marking for a potential Minor 2 bottom.
Although, some near term caution is advised since the rally has already reached logical resistance at the 2884 pivot and the Minute b rally high 2892.
Medium term RSI is overbought as well.
We are now watching the short term waves to see if this rally can impulse in a sustainable fashion.
As mentioned, Minor 2 most likely completed at 2729.
We have Minute a at 2801 and Minute b at 2892.
Minute a and Minute c completed with similar size and structure, which resulted in a fairly symmetrical three pattern.
As you can see from the 60 min chart, the pivots have done well, with Minor 1, Minute a, Minute b and Minor 2 all having turning points within those ranges.
From 2729, the SPX rallied to 2885 without any meaningful pullback.
After such a sizeable move, it would not be unexpected to get a significant pullback in the near term.
So far, our short term tracking can count only one wave up to 2885, so we’ll need more price action to assess this rally further.
Short term support is at the 2858 and 2835 pivots.
Resistance is at the 2884 and 2929 pivots.
Short term RSI got extremely overbought at the high, then pulled back within the neutral zone by the close.
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