An overall bullish expectation with some targets to watch
Quite a week in the equity indices last week. Is the end upon us? As you know, my view is no, that we have been expecting a wave (iii) high in the advance up from early 2016 and now should be forming a several month corrective pattern for wave (iv) before an eventual top that should end both the advance from 2016 but also the rise form the 2009 low.
Here’s a quick reference for Bradley siderograph inflection dates and gaps up in the Dow and SPX
Here’s a compilation of the open gaps in the S&P 500 and the Dow 30 since last September.
Signs that this triangle pattern can break downward
The index can climb still higher after a modest correction
The theme from when I posted these remains the same from about a week ago. I just added the next steps up in the charts to keep an I on.
The Russell 2000 is in a similar position as most of the other major indices. Probably in wave (iii) of [v] up from the 2009 low. This implies one more down/up move before any serious correction sets in.
Counting an Elliott fourth wave in the upward progression
Price starting to test the area that could prompt a breakout from the decade-long converging range.