Many global markets are closed today thus thinking today is somewhat constrained. The futures are up modestly but think cash will open near the first resist at 2389 SPX. Can’t rule up a touch of the next resist at 2394 but think there is still a decent chance for 2374 SPX to be tested before […]
The MSCI German ETF (EWG) has what is thus far a corrective structure up from 2009 to 2014 and a possible ugly leading diagonal down to the 2016. From there, the move up looks like a three into a standard deep retrace value. This area is also roughly a test of the 2000 high.
It is not clear whether SPX is working on pushing up to a new high in (iii) or if in ‘b of (iv)’ but from a practical standpoint there is not that much difference. Both imply a turn lower before much longer.