The cash SP500 sold off into our lower support zone (blue box on the chart) yesterday and then reversed higher. Note that the RSI (top pane) has held above the area reserved for bull market support at both the current and mid-April lows. Whether this reversal now leads to a larger rally is the next question. The first step is to close above the medium (blue) moving average.
Bottom Line: The allocation mix meter remains at +100%. I am expecting to see new highs before the April low is violated.
ASIDE: I mentioned my friend who is, in my opinion, an accomplished Elliott Artist. I call it artistry not in a derogatory sense, but because I think it requires a certain amount of creative flair to do it right. I will begin posting his counts (without comment) under the title of "Chuck's Waves". I will start today with the CRB Index.
1 comment:
Only to provide an alternate view, I see that we need only one lower Daily close on the SPX for DeMark's D Wave to signal that we may be working on Wave 1/A down. I do not hang my hat on D Wave, but it often can provide more clarity than EW, particularly when the going gets muddy. One more probe into your target box would also satisfy more closely my 1312 TDST target for a bounce. But this market does tease more than satisfy...we'll see.
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