I have been looking at this chart for last 2, 3 hours, just analyzing it and thinking hard. I went outside to a mall but kept on thinking where we are headed next?
For last few days, I had been thinking we are done going up but on the other hand, I kept thinking, markets can not be that simple. else everybody would be rich. It has to fool the mass. So, today I started looking at other options on SPX with an open mind. After drawing this chart, I think we have more upside. i.e. to 1050 range. Here is why.
We are in orange channel now and we have peaked on that, plus we are hitting that strong horizontal R line (shown to me by Tahir from f8analysis blog). So we will go down for some time/price, I think to where my mouse is pointing to, i.e. 850.
We are also very close to top of red channel line (which is approx. 975). So, after touching 850, SPX should incline upwards towards top of blue channel (which is 1050 range) but after breaking through red channel resistance.
Per EW, that can be top of P2. Bulls and bears both will be happy. So, in nutshell, I am looking for retracemnt down to 850 and then upside to 1050. After that, we go down for P3. How's that?
