S&P500 can be trading in late stages of a wave c), final wave that is part of a three wave correction. As we can see current wave c is displaying qualities of an ending diagonal, which means a sharp and sudden drop lower could be in for the stock. Break of 2379 can cause and confirm a sell-off.
An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes, they appear only as the final “C” wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement. Its formation is a 3-3-3-3-3.
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aaaand here comes ATH, what a crap market this is?
josephtse
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FOMC minutes likely to drop stocks. MACD already crossed down on 60 minute graph on spx. 5dma about to cross down the 6dma. Likely a small pullback of 20ish points. But be careful because that could be the slingshot that sets it up to break into new highs, or at least 2410 on SPX as OPEC announces cuts and extensions. And I'm thinking OPEC is gonna surprise with deeper cuts. FOMC minutes certainly will not be good news as they are basically saying they will reduce the balance sheet, but just how fast and how to unwind different maturities without causing too much turbulence. Just describing how they're gonna smooth the turbulence, but turbulence it will be.
5898928
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@josephtse, "OPEC is gonna surprise with deeper cuts" - not gonna happen
5898928
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"one should never short indexes" picture here, this thing will go up until last QE ended in the world
5898928
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No SP500 selling until oil reverse down, IMHO
So will need to way till OPEC meating?
TomPower
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@5898928, you've been right so far that's for sure but I will follow this chart, hopefully it goes ,as I am under water.
5898928
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@TomPower, FOMC minutes can drop stocks, tomorrow. (We will see)
TomPower
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@5898928, ok that didn't end well for me, perhaps your argument had some merit