EWI started the free intraday week. Their main "strategic" view is that SPX made - starting from the Jan top - either an ABC, or a 1-2-1(of 3). In the first case, we are off to new highs... in the second, we are setting up for a significant move down. For now, I see that today the index stopped at the 38% retracement of the second leg of the decline.
Are we in the 2 of 3? There is only way to find out. If the advance is corrective and breaks down, watch out below. And vice versa. No need, really, to "be" either bullish or bearish... imo.
By about 11 am Friday the (presumed, for the moment) W2 will have lasted 38% of the time which it took for the (presumed) 1 of 3 to unfold. The 50% extension is Friday 3.30 PM, and 62% would fall on Monday ~2 pm.
Yesterday's low was a successful test, btw, of the 62% retracement of the 2000-02 bear.... so, those lows are pretty important. |
