Next Move for the SPX is Higher …

When I look at the Price Structure of the current corrective pattern in the S&P 500 Index, I think that we are still in the midst of making a bigger ABC.  If that is correct, I think that the median line will act as support here and we will bounce higher to complete the B-wave of the corrective pattern … that will set up a pretty ugly early December for the bull-tards.

S&P 500 Index (SPX) – 195 Minute Chart #1

The median line looks like it held to the exact penny at yesterday’s low … so are we ready to bounce higher?

S&P 500 Index (SPX) – 195 Minute Chart #2

If we are going to bounce off of the median support line, seasonality will definitely help.  The bounce higher will be the minor C-wave of the bigger corrective B-wave, and those are typically 3-wave structures.  The final move to complete the bigger ABC corrective price pattern will be vicious … that should also be a bigger 3-wave structure/down-leg.

S&P 500 Index ETF (SPY) – 195 Minute Chart #1

For traders of the SPY, price should bounce to at least high enough to take out the A-pivot high of the B-corrective wave structure.  That is $281.22 or about 6.5% higher than yesterday’s close … that type of move should suck in lots of year-end rally’ers and that is exactly what needs to happen to set-up the final C-wave to support.

S&P 500 Index ETF (SPY) – 195 Minute Chart #2

The final C-Wave should find support around $250.50.

S&P 500 Index (SPX) – 195 Minute Chart #3

The final C-Wave for the SPX should find support around 2510.

Bottom Line … Enjoy the bounce here traders, and be on the look-out for resistance in the SLOT.  If my read is correct, the bounce in price will fail there and turn lower for the final C-wave move into support.

Cheers … Leaf_West

 

 

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