[9:04 PM Update]
Still looks potentially bullish.
[5:49 PM Update]
Look familiar? Remember back in late June I speculated on a similar pattern?
If you need to compare.
[5:49 PM Update]
Compare the SPX and RUT daily. I think they are tracking one another.
SPX- DAILY
RUT- DAILY
DIAMOND BOTTOM?
Look familiar? Remember back in late June I speculated on a similar pattern?
If you need to compare.
EOD Update
Looks like we got the bounce I was looking for today and a little bit more, along with the drop down to complete wave y. At least I believe it is complete at the moment. I'll need to look at the squiggles later to confirm.
I like how it makes the corrective structure more complete and even if you are counting the move down off the 7/7 high as a five wave structure, it appears as though there are five complete waves.
My primary however, has this completing wave 4 of Minor 5 and / or possibly wave [e]. As I previously mentioned, at this point, it doesn't really matter because both options are implying a bounce towards a new high to come, even if it's only slightly higher.
If one were to view this as five completed waves down, then one should expect at least a 38% retrace and perhaps a 50% rebound is in store.
Other things to note is the fact that the market closed back above the 50 day SMA and printed an inverted hammer candlestick. See the image at the bottom.
INVERTED HAMMER
From Stockcharts.com
