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jthrasher
Sep 25, 2020 10:05 AM

SPX buy area based on 2018 fractal (ABC) 

US SPX 500OANDA

Description

Watching this possibility closely

Comment

Hard to say where it ends up but I believe we're seeing the same ABC correction as late 2018 which, when it ends, will be very bullish.

Comment

Doesn't look as sharp of a correction this time around - based on fibs I'm thinking it resolves around 3k (or very slightly below). I believe we're about to have our extended 5th wave of ending 'C'

Comment

Also possible there's no 5th wave extension and it's already over, but i'm suspecting one more leg

Comment

Red path is what i'm suspecting. If we see a 5 wave impulse up it may be over. Both scenarios are ultimately bullish, only the red path has one more leg down. GL

Comment

Looks to me like we followed the green path and that the correction is, indeed, over. The follow through on Sunday and yesterday was the 3rd wave impulse I wanted to see. Looks like this is wave 4 of the first impulse off the lows. I'd expect it to either bounce here or a little lower. (they typically retrace .382).

Comment

Looks like it's coming out of this correction in a similar flat pattern as it did in 2018
Comments
leobacan
It brokes above the trend, the market is preparing for new stimulus. We'll see if it can hold it
jthrasher
@leobacan, Definitely may have bottomed. It was never as sharp as the 2018 move so it's quite possible the correction is over. I'm going to wait to see Sunday night into Monday how trading goes. If it continues up and looks like strong 3rd wave, I'll be inclined to think the correction has finalized. Still a little too early for me to say comfortably that it's over. Wouldn't hurt too start averaging in from here, though, because even if it does continue lower I don't think it will go THAT much lower, and should be strong move upwards after
leobacan
@jthrasher, Thanks for the reply.
I will be attentive to your updates!
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