A good day. A really good day. The target zone of 1340/50 was met, and was a great place to exit short positions. A few hours of chop, the floor was formed, and it was a good time and price to go long. The H/S formation that I believe I have identified - if it occurs, will be extremely useful in the days ahead.
From a cycle perspective, it appears we have a clear minor fifth wave lower which concluded today, and the first main wave up (a) has very quickly developed.
If the Pink count is correct, then sometime next week we will level out, a little chop..and then snap lower...on a journey via the elevator to hell.
SP' H/S formation - NEW chart
SP'60min - standard chart
IWM'60min
VIX'60min
Summary
The bulls have a close better than any could have hoped for. A close above the important 10MA of 1360 With the VIX closing almost flat, bulls have what is a pretty secure floor of sp'1347. Upside target tomorrow will be around 1375/80.
I would expect some swings between 1355/80 for a few days, before making a final peak in the RS early next week. Such swings will likely confuse those not aware of..what might be the RS of a H/S that is the last stage before the monster wave to 1270...or lower.
More later, focusing on those daily cycles
