Taking out 3806.91 minor high puts 13th Oct low (3491.58) in a critical position.
As explained in my previous publications, there was a chance for best case scenario and market bounce at 0.5 Retracement of rally after pandemic low and Bulls, Bottom fisher and Dip Buyers took the chance however, is this best case scenario going to happen? Bulls should pray for market to sustain last created low !
I showed two different yet possible scenarios on the chart:
On the left side of the chart ,shown in green, we have our best case scenario which calls for completion of an ABC form of correction. With yesterday's taking out 3806.91 minor high we have now a proof for termination of last down going wave which is labeled as wave C. If this is going to happen , SPX will see unbelievable upside targets. The key for this scenario is 3491.58 low. As far as index is above this low, market is safe for bulls.
On the right side of the chart, shown in red, we have our terrifying scenario which suggests painful targets for SPX. I am sure that you can see powerful resistances in this chart. Index is below 50,100 and 200 days moving average and also below major down trend line. I intentionally excluded these resistances from best case scenario chart to show how optimism can make us ignore what we should see. Is market able to break all these powerful resistances and continue it's way up to new ATH and unbelievable targets? If not, Market will see very unpleasant, terrifying painful targets.
Macroeconomics, War and energy crisis, Inflation and FED's series of rate hikes do not support best case scenario but market is crazy sometimes. For me and to be in safe side, breaking out mentioned resistances is necessary to be sure about market up trend.
Please keep this golden statement in mind :
" Sometimes best thing to do in market is doing nothing "
Good Luck.
As explained in my previous publications, there was a chance for best case scenario and market bounce at 0.5 Retracement of rally after pandemic low and Bulls, Bottom fisher and Dip Buyers took the chance however, is this best case scenario going to happen? Bulls should pray for market to sustain last created low !
I showed two different yet possible scenarios on the chart:
On the left side of the chart ,shown in green, we have our best case scenario which calls for completion of an ABC form of correction. With yesterday's taking out 3806.91 minor high we have now a proof for termination of last down going wave which is labeled as wave C. If this is going to happen , SPX will see unbelievable upside targets. The key for this scenario is 3491.58 low. As far as index is above this low, market is safe for bulls.
On the right side of the chart, shown in red, we have our terrifying scenario which suggests painful targets for SPX. I am sure that you can see powerful resistances in this chart. Index is below 50,100 and 200 days moving average and also below major down trend line. I intentionally excluded these resistances from best case scenario chart to show how optimism can make us ignore what we should see. Is market able to break all these powerful resistances and continue it's way up to new ATH and unbelievable targets? If not, Market will see very unpleasant, terrifying painful targets.
Macroeconomics, War and energy crisis, Inflation and FED's series of rate hikes do not support best case scenario but market is crazy sometimes. For me and to be in safe side, breaking out mentioned resistances is necessary to be sure about market up trend.
Please keep this golden statement in mind :
" Sometimes best thing to do in market is doing nothing "
Good Luck.
Comment:
CPI data when SPX is at major resistance. Exciting day !.
Comment:
One more strong rejection from major down trend line !
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