we saw a fairly strong reaction from a key level near the end of the day on friday, spy printed a daily bullish divergence on the ultimate oscillator as well. the last bullish divy print of this magnitude gave us a 12% rally.
conservative target for this push up would be at the 0.50% retracement of the previous leg ($420 give or take).
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-i'm assuming it's playing out a leading (or) ending diagonal, we won't know for sure which one it is until it is completed. -there's also a slim chance that the correction has been completed through a simple zig-zag (green trajectory)- -so it is important to focus on "how" spy moves up in the days\weeks ahead. >if it's in another choppy 3 wave move, then we will see another big leg down. >if it's in a clean 5 wave impulse, then there's a possibility the correction is done.