A couple of chart updates based on this week’s price action.
The S&P500 ($SPX) broke through the downward trendline on Monday, so you can lay in a new upward trendline off the low prices. The ADX directional indicators also crossed over based on Tuesday’s price movement, meaning two of the three signals tracked for the weekend outlook are now showing an uptrend.
For Elliott wave , the SPX is in the final leg of the current rally (the c-wave of the larger B wave). Once this wave completes, the S&P is expected to resume the correction.
Tuesday’s price action left a lot to be desired, gapping up to open trading and then selling off throughout the day. A good reminder to watch out for head-fakes; volatility is still really high.
Best to your week!