Last Chance For Now

With the market moving through resistance today, it has certainly opened that upside door yet again.  And, to be honest, the manner in which we continue to push higher in 3 wave structures is again reminding me of the market action seen at the end of 2019 into early 2020.  And, it would not shock me to see a similar termination.  

But, for now, I have given the market ample opportunity to provide us with an indication that it wants to drop to the support region below.  However, it has not provided us with the requisite 1-2 structure to suggest that such action is taking shape.   For this reason, if we take out today’s high, I have to consider whether we are extending in wave 5, as I am showing on the 60-minute chart, with the next resistance being in the 6114SPX region.

But, overall, the main analysis is going to carry us forward still.  Until the market is able to break down below the 5560-5670SPX support, it still leaves the door open to rally as high as the 6273-6377SPX region into early next year.

When I see this many overlapping structures pushing us higher and higher, it gets me terribly nervous, as the conclusion usually triggers a strong reversal to the region from which it began.  In the smaller degree diagonal structure, that points us to the 5100-5400SPX region, whereas the larger degree diagonal points us down to the 3500-3800SPX region.  In know that this potential sounds quite far off somewhat hard to believe, but when a diagonal concludes, the reversals are often quite strong.   But, before we assume that a diagonal has indeed concluded, we still need confirmation below 5560SPX.  Until then, the door remains open for the next higher targets.