SPX - "what is a typical reaction to this 5th hit" - Hi Tracor... GREAT questiion!! In this post, I outlined that the bullish result would be a 50 point pullback after the megaphone line hit: Silicon Investor (SI) -- The First Internet Community
On Thursday Dec 14th upon hitting the line, the index pulled back from 4738 to 4693. The 45 point pullback was satisfactory, and since the line HIT, a PENNANT (see chart below) formed, and an upside breakout occured today. Fortunately, in my toolbox mentioned here many moons ago, I have the formulas to determine, based upon upcoming SPX action, exactly how high the index ascends from this point. AND, we'll have the megaphone breakout targets to guide us as soon as 4755 is exceeded, which hopefully will line up to the same target number as the pennant breakout. The current guess is 5070ish, but the next high prior to pullback and the exact crossing of the megaphone line will determine the exact projected reversal target. The E-Wave count crystalline firmament ceiling is locked at 5165, so 5070 would fulfill MOST of the potential run. The longer it takes to get there, the more winning long side bullish trades we can complete.
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