maikisch

Weekend Update: Friday's Rally Held Into The Close

SP:SPX   S&P 500 Index
Due to plans this weekend I'm writing my weekend updates early for my followers

Aristotle is quoted as having said. "It is the mark of an educated mind to be able to entertain a thought without accepting it."

I entertain thoughts of alternative patterns constantly, but always rely on a primary count to follow through first and foremost. But with Fridays late strength...and by strength I mean NOT tanking before the weekend which would have been the easy way out for traders on a Friday afternoon....my BLUE Alternative and my BLACK Primary Counts have become equally probable in my opinion.

Does Friday's session change my perspective on making new lows. No. Not yet. I say not yet because I want to remain agnostic to one gyrations. The pattern simply does not look complete without a thrust down to new lows. However I will not rule out we go slightly higher before lower lows. On the chart I have a region called NO MAN"S LAND. This is an area if we can rally to can turn into an ending diagonal that would ultimately reconcile in the target box...but would just take time. The loss of positive divergence on the daily chart leaves many possibilities to how we bottom but NML makes things more complex. Over 4320 and I can no longer be sensibly looking for lower lows unless we rally to 4500-4600 and top in a B wave before we truly crash down.

I encourage each of my followers to study my chart above. BLUE and BLACK are equally probabilistic. Whereas NML kind of takes the simple and screws that up.

I favor the simple (low 3700's next week) , until it becomes no longer sensible.

Best to All,

Chris
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