The cash S&P500 drove higher on Tuesday and we can have more confidence that we have hit a fifth wave target. The positive price action created a price fractal (symbolized by the blue diamond symbols on the chart) to form at the 666.79 low. As used in this blog, a price fractal low is a price bar where the low is lower than the two bars both before and after it. Similarly a price fractal high is a price bar where the high is higher than the two bars both before and after it.
Price fractals are important because I have learned that every fractal is also a Price Reaction Point (except for those occasions where there are two consecutive fractals of the same type; for example two low fractals without an intervening high fractal). Since the market made a high yesterday greater than the two previous price bars we know a price fractal high will come next. This ensures the price fractal low at 666.79 was a Price Reaction Point. Based on this information I can tentatively (hence the gold color) label the March 6 low as wave v”.
The odds now favor the interpretation that a complete trending impulse pattern has formed from the
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