Courtesy of AllanTrends
The rally of the past few days should be looked at in two ways. First, It has been strong enough to turn short-term models around to LONGS. Second, it needs to be viewed in terms of market structure, especially as normal retracements of mega-moves. Below are the Weekly and 240 minute SPX charts with Fibonacci levels superimposed:
[Click on charts to enlarge]
SPX Weekly
SPX 240 MInute
I’ve also added the Elliott Wave structure because it does fit well with the Fibonacci levels. Is sum, stepping back the major downtrend appears to be intact for now, and should reassert itself soon – this looks like a normal retracement.
The working assumption in my account is that once this rally exhausts itself and even larger mega-move down is waiting in the wings.
