Candles in major indices made very promising candles and formations today. The chances of a rally tomorrow are rather high. Let’s explore the hypothesis from the candles and waves perspectives.
SPX: today’s candle canceled the bearish odds of a Dark Cloud Cover of yesterday. The indicators are healthy and support a move higher.
NDX made a bullish Maribozu that closed at a new high. Bullish unless proven otherwise.
DJIA closed with a doji at the bottom. If it closes tomorrow above $36160, it would mean a major event.
The possible direction and target for such event were shared in an “alert” for the subscribers today.
I track three possible paths as shown on the chart above:
- Green (primary).
Wave 4 possibly completed and the target for wave 5 is in the $4770-4810 area. Note that there is a chance for a bigger wave “alt 4”.
This is well aligned with the SPX swing alert on October 18 for target – $4750-4800.
There were two events in indicators today that might urge me to reconsider the upper targets for this move. If confirmed tomorrow, an updated roadmap will be shared with the subscribers in the Weekly Analysis.
Wave (1) completed. A bigger pullback to $4450-4600 in wave (2). Red rectangle.
The correction that started in September is not over. Possible wave C, targeting $4250-4300.
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