Short term whilst it remains above 1220 the current trend remains up. There a few short term ideas I am watching, but if a new high is seen, then it can suggest the end to wave [v] of an impulse wave (5 wave rally) to end wave C of a larger zigzag correction (3 wave advance) from the Dec 2018 low.
Initially, I was trying to count the move from the Dec 2018 low as an impulse wave (5 wave advance), but with the continuation to the upside and the overall look from the Dec 2018 low, I feel the advance counts better as a zigzag correction (large 3 wave advance) and not an impulse wave ( large 5 wave advance).
So allow for a bit more upside to end wave C, a strong move back below 1220 is needed to support a reversal and move lower. If the OEX moves lower, then based on the high correlation with the SPX, it should also see the SPX move lower. So it’s worth watching the OEX for clues to the SPX if you are trading the SPX/ES.
Wave B: (the same sentiment applies for wave X) Prices reverse higher, which many see as a resumption of the now long-gone bull market. Those familiar with classical technical analysis may see the peak as the right shoulder of a head and shoulders reversal pattern. The volume during wave B (X) should be lower than in wave A. By this point, fundamentals are probably no longer improving, but they most likely have not yet turned negative.
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