2/26/2020 - EOD Update

I think it is safe to say that wave (iii) has completed. The market has pulled back nearly 8% since the closing high and AH set for more damage down to 10% or so.

If this is wave (iv), the alternation guideline seems to be in play, assuming wave (ii) is correct. Wave (ii) appears to be a sideways correction, with wave (iv) a sharp one.

SPX - Daily

From a technical standpoint, the area in the oval appears to be a good target for the following reasons:

1. Support at the 200 day SMA
2. Back test of the top end of the expanding triangle trend line
3. 50% retrace of wave (ii)
4. Support at the wave (i) high at 3027.98, which if it penetrates lower, will violate the wave (i) rule.

I guess we shall see if the market cares about any of this.