Mini SP500 Intraday New Record High!

By the end of this week, all September contracts I use for the general stock markets will expire. We then move directly into the December group of contracts. The big gap in the beginning of September, has now been closed off, but another gap opened on the way up. The open gap below will get closed off on the next trip down. In line type, this SP500 has already broken new world record highs, but in bar chart type settings, we are still a few points away from another record high.

From the August 21st bottom we have 5 waves up, that technically, we can’t fit into an impulse. It sure works as a diagonal set of 5 waves with the 4th wave dipping well into wave 1 and 2.  From the wave 3 bottom in Subminuette degree, the SP500 charged up the 5th wave with another zigzag. Technically, this set of 5 waves would be called a perfect ending diagonal, but from my perspective, it’s just another diagonal set of 5 waves. Diagonals develop most frequently in any 5th wave, at all degree levels, going up or down. This present diagonal could have extended dramatically with no overlapping waves anywhere. As long as we can still see the zigzags, on waves 1, 3, and 5, I will class it as a diagonal set of 5 waves. 

This chart sure can push higher, extending this last 5th wave, but it also warns of an impending surprise reversal. 

Hits: 2

Share this...
Email this to someone
Print this page