S&P still rallying hard into Tuesday evening. It is approaching the flat top of a ascending triangle, which can either be a reversal pattern or a continuation pattern. What it is important to watch is that 1.2 fib level. In Elliott wave theory, a corrective wave can have a maximum of a 1.2 extension off the motive wave's peak and subsequent bottom. Assuming Sept high was the end (big assumption), then S&P is right around that value now. Also note, if for some reason we are in a larger corrective wave with Feb high the end of the motive wave and March the bottom, then the 1.2 fib extension almost perfectly aligns.
Note the pink dashed support trend line goes right through the middle of the smaller rising wedge. If that is an indicator, then it would seem that the S&P is more likely to choose the bearish pattern. I keep trying to figure out what would push the S&P hard enough to break to the upside, but it is not clear. Yet, look at today (Tuesday). What a strong rally all day for no real economic reason. We all knew Biden was president elect for over two weeks, just more bull nonsense.
Note the pink dashed support trend line goes right through the middle of the smaller rising wedge. If that is an indicator, then it would seem that the S&P is more likely to choose the bearish pattern. I keep trying to figure out what would push the S&P hard enough to break to the upside, but it is not clear. Yet, look at today (Tuesday). What a strong rally all day for no real economic reason. We all knew Biden was president elect for over two weeks, just more bull nonsense.
Comment:
So far right on cue as it follows that line from 3 to 4.
