Today $SPX hit the target specified yesterday for the subscribers. I am sharing the Sep 9 post for everyone to read.
After studying the candles and indicators, I charted from scratch the last rally in SPX (I used futures for the chart). The wave was very clear for the first 4 waves. The wave 5 was unusually symmetrical from the beginning and it went sideways. As the result, it ended as a fairly large and clear ending diagonal. Multiple factors support the idea.
- When large rallies are topped with ending diagonals, it typically means a dramatic and often large retrace. The first wave of the reversal normally lands at the level of the diagonal origin, the beginning of wave 4, $4462 in our case.
- The slope of current wave down makes me think that $4462 or lower could be reached tomorrow (-0.9% from the price as I type).
- Tomorrow is Friday, the day of weekly candles. As I shared in previous updates, the weekly candles already don’t look healthy.
- If SPX closes lower than today, it would form one of the strongest bearish reversal candles on the weekly frame.
- If it happens, expect at least one week of lower prices, over 80% probability of a multi-week (even multi-month) correction.
- I could continue on about the possible paths for wave B etc., but let’s just get the closure on Friday and I will address them in the weekly analysis on the weekend, depending on the outcome tomorrow.
End of Sep 9 post.
This one definitely goes on the Track Record. Not to mention the call on the Top the week before.
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