Late post for me so I'll keep it short. I made some adjustments to the option1 and 2 counts I have been tracking and removed the triangle option, which became the primary rectangle option below.
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| Rectangle Option |
With today's early AM sell off, the rectangle option appears to be the count to watch for tomorrow. Based on this count a wave iii of 3 up is to be expected.
If the market cannot blast through and make a new high, which BTW would push through the 200 day SMA, we must respect the new option 2 count below.
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| Option 2 |
Should the market fail to push through the 200 day SMA, the next best alternate is a wave y drop to the 1230-1225 levels. A move to 1225 lines up with a 38% retracement of 11/25-12/5 rally.
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| Repeat? |
Here's one pattern that may favor option 2. Notice that in April, the market traded in a range for at least 5 days before finally pulling back. Perhaps the market we're seeing the same thing again.
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| SPX - Weekly |
I am still keeping an eye on this chart as well. A move over 1271 will take the market over the red TL.
