Pullback In Progress - Market Analysis for Dec 10th, 2024

Normally, when an ending diagonal completes, the reversal is quite strong and sharp.  We are not seeing that since we struck the high at the end of last week.  Therefore, the initial indication is that we have not struck a major top just yet.

But, we may still be seeing a bigger pullback taking shape, such as the alt iv on our charts.  And, depending on how the market takes shape into that support, that may be the next major buying opportunity for those that would like to still play the long-side in this very stretched market.

For now, I am assuming that we have completed an a-wave within this pullback, and I would like to see a bit more of a bounce in the coming days for the b-wave.  There really is not much more I am able to outline for the smaller degree expectation.

Overall, we will need to see a break of the 5850SPX level (which is still quite a ways lower) before we confirm that we will be testing that alt iv support zone.  Until that happens, a stretched market can always continue to stretch further.  But, for those looking for a higher-probability, lower risk entry on the long side, you may have to allow the market to provide us with an appropriate test of that alt iv support zone in the coming weeks.