This chart is a continuation of my previous one on the pattern that SPX is making. I added 2 zones to help me focus on the potential reversal spots.
The green/long zone: there are still 3 weeks left for the month of December and the outlook is very . As such, I think the market will continue to sell for the next 2 weeks, making ups and downs. This should provide us with plenty of opportunities to short the retracements. I think that SPX will eventually bottom in the 250s. The last week of the month could see a relief (this would also coincide with Christmas); the market could trade higher with the monthly candle closing around the neckline/260 ish .
The red/short zone: Still very early, but I don’t think the right shoulder will go as high as the left one. Anyway, I will update in this chart or a new one later when more information becomes available.
I just posted this chart showing my entry for the next leg down.
We are getting close to the target. I think we could have a retracement first, then a final dip. We'll see.