My last post had a target zone of SPX 2675 to 2678 for completion of an Elliott wave Ending Diagonal Triangle (EDT) The SPX high on 12/15/17 was in the 2679 area just marginally above the target zone. This high was quickly followed by a rapid decline in the last half hour of trading on 12/15/17. This rapid drop following an expected throw over of the upper trend line - typical at the completion of an EDT, strongly implies the upside pattern is complete.
After an EDT is complete, there is usually a very rapid retrace back to the EDT point of origin - which in this case is SPX 2605. The down side target could be reached as soon as 12/21 or 12/22.
Big US tax bill vote is expected 12/19 or 12/20. As of 12/15 it is strongly believed that there are enough votes to pass the bill.
I wrote a post (12/14) about this same possibility... a return to S+P 2605, should 2652 ....be broken to the downside
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The chart included in this article text by Mr. Rivest shows complete clarity of such an event happening,... before the end of the year.
It would certainly be a rapid style event, and the break would be a sudden waterfall like move to the downside.
A move up to S+P 2690 in 12/18 trading .....would be just the perfect final push needed to the top,... before the decline event begins.
Thank you Mr. Rivest for this remarkably illuminating post.
THE_UNWIND
SwingDow30
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Hmm could be looking for a gap up to 2690 first
Teich50
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@SwingDow30, Agreed. The best the bears can hope for is a gap-and-crap during the cash session on Dec 18.
Teich50
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@Teich50, No gap and crap so far. The best the bears can hope for is that today's gap in SPX is an exhaustion gap. We will see after a few more sessions.
nheminism21
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Mark, I think we tag 2702 area first then we see a drop to 2602 area before the end of the month
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The chart included in this article text by Mr. Rivest shows complete clarity of such an event happening,... before the end of the year.
It would certainly be a rapid style event, and the break would be a sudden waterfall like move to the downside.
A move up to S+P 2690 in 12/18 trading .....would be just the perfect final push needed to the top,... before the decline event begins.
Thank you Mr. Rivest for this remarkably illuminating post.
THE_UNWIND