Instead of of a Double Three WXY, SPX could also be in a Leading Expanding Diagonal which is much more bearish as Wave 5 is usually the longest wave and the beginning of Wave A of a larger ABC correction. I have targets around $3,250 very similar to the Double Three WXY. SPX has been bouncing off high volume nodes on the volume profile, so the next one is at $4,151 which coincides with a .618 fib.
I'm having trouble seeing 5 waves at the end of (1), so I'm just going to stick to the 3-3-3-3-3 sub wave count.
That being said, the weekly bearish divergence on DXY could have begun to play out along with the weekly bullish divergence on EURO around parity. Should DXY start to fall off a cliff, this could open a window of opportunity for stocks and crypto. Long term outlook on DXY is still BULLISH as we approach levels last seen in the dot com bubble decades ago. The Yen makes up the 2nd largest weighting of the DXY, so if the Yen is truly headed to the 1:1 ABC target of 0.006, DXY still has legs to run. If SPX puts in a higher high above $4,326, this wave count is invalidated.
Sentiment: A lot of people are still BEARISH which is not a good sign for the bears. I'm really confused with monthly stars on US10Y and DXY being negated, yet SPX just put in a bullish engulfing weekly candle, and Bitcoin recovered above $20,000. Honestly, making my head spin in circles. If there is any time to be paying attention to the markets, it's now. Every week of this month is going to be critical.
Major Events to look out for:
CPI this Tuesday September 13th
FED interest rate decision September 20-September 21st
ECB just had its largest interest rate hike last week in over 2 decades. Contrary to "inflation is under control", actions like interest rate hikes speak louder than words used to calm down and manipulate the public into believing everything is normal. I really miss my $1 snickers bars, and I'm not paying $1.5. On a positive note, inflation is great for weight loss.
I'm having trouble seeing 5 waves at the end of (1), so I'm just going to stick to the 3-3-3-3-3 sub wave count.
That being said, the weekly bearish divergence on DXY could have begun to play out along with the weekly bullish divergence on EURO around parity. Should DXY start to fall off a cliff, this could open a window of opportunity for stocks and crypto. Long term outlook on DXY is still BULLISH as we approach levels last seen in the dot com bubble decades ago. The Yen makes up the 2nd largest weighting of the DXY, so if the Yen is truly headed to the 1:1 ABC target of 0.006, DXY still has legs to run. If SPX puts in a higher high above $4,326, this wave count is invalidated.
Sentiment: A lot of people are still BEARISH which is not a good sign for the bears. I'm really confused with monthly stars on US10Y and DXY being negated, yet SPX just put in a bullish engulfing weekly candle, and Bitcoin recovered above $20,000. Honestly, making my head spin in circles. If there is any time to be paying attention to the markets, it's now. Every week of this month is going to be critical.
Major Events to look out for:
CPI this Tuesday September 13th
FED interest rate decision September 20-September 21st
ECB just had its largest interest rate hike last week in over 2 decades. Contrary to "inflation is under control", actions like interest rate hikes speak louder than words used to calm down and manipulate the public into believing everything is normal. I really miss my $1 snickers bars, and I'm not paying $1.5. On a positive note, inflation is great for weight loss.
Comment:
Could be either wave counts imo or I could be completely wrong if SPX puts in a new high above $4,326.
Comment:
Back to the WXY wave count, a 1:1 could land SPX around 4,600 assuming the yellow (X) wave hasn't been completed yet. Before I get too optimistic, breaking 4200 is going to require a catalyst (CPI, FED interest rate decision). High Volume Node, .618 fibs, 200 DMA all at 4,200. I think I've been too focused on the pink supply trend line and assuming it's never going to break. Let's see what happens.
Comment:
SPX could be setting a temporary bottom before the eventual date with the 200W MA and possibly lower (~3200)
