SP500 Cash Chart, Intraday Bullish Rally Review

 

 

This chart does not trade during the night, but it sure seems to have a better wave pattern,  that can be easier to create wave counts with. On the Intraday charts the SP500 did not drop to new record lows like the DJIA did,  so that always produces conflicting wave counts at this intraday level.  When it comes to diagonal charts, all hell can break loose as the waves can charge up and down dramatically.  At any other time we would just about  call it a triangle, but I don’t think this is the case with this market.

Since all my counts are diagonal everything has to be counted with zigzags in mind. Our present rally sure can fit as another “B” wave rally, which would then be followed by another set of 5 waves, resuming the “C” wave trend back down. We would be heading down another, “C5” set of waves which can extend dramatically when they want to.  If that is the case, then it sure would take the rest of this month to play out,  before we  get close to a potential diagonal wave 3 position.  Any C5 decline can alternate from the A5 decline, where we would hardly see any subdivisions at all,  as they can be really small in physical size.  Just in case you may be reading about  any A5 and C5 waves, for the first time, I use that description to  separate between the leading 5 waves to an “A” wave,  and then the C5 is always the trailing set of 5 waves.  This is for any zigzag in any direction, and in any degree.

I know it sure seems like slow going, but I’m sure there will be times when sheer panic sets in, which will speed up any slowpoke decline.  They have daily limits set anyways, so that usually will put some sort of a cap on any real single dramatic decline.

We are still a full 4 days away from any new moon, which can give us great reversal setup as well.

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