Real nice reversal here on the weekly chart with both the MACD and RSI showing us that a bullish divergence is happening here at historical support.
A common retracement from the highs would bring us back to 400 at the 382, and 429 at the 618.
Looking at the structure of this wave down and lower low double bottom, we could anticipate a reversal as high as the 786 to complete the Bearish Cypher. In this case, the downside extension could bring us a new low at the 1.272 retracement of the Cyphers CD wave.
In the case that we break above the .786 i have marked off for the cypher target, i would start to consider a bigger picture developing, potentially forming a wyckoff distribution range. If this were the case, we could reach as high as the 1.13 which would be the target of the local double bottom we are trying to put in.
This would make a ton of sense to me, and this is also how the SPX was distributed during the dot com and great financial crisis. Should we get a wave up to the 1.13, that would surely take the pressure off all markets for a while.
A common retracement from the highs would bring us back to 400 at the 382, and 429 at the 618.
Looking at the structure of this wave down and lower low double bottom, we could anticipate a reversal as high as the 786 to complete the Bearish Cypher. In this case, the downside extension could bring us a new low at the 1.272 retracement of the Cyphers CD wave.
In the case that we break above the .786 i have marked off for the cypher target, i would start to consider a bigger picture developing, potentially forming a wyckoff distribution range. If this were the case, we could reach as high as the 1.13 which would be the target of the local double bottom we are trying to put in.
This would make a ton of sense to me, and this is also how the SPX was distributed during the dot com and great financial crisis. Should we get a wave up to the 1.13, that would surely take the pressure off all markets for a while.
