with Anthony, ZigZag & Platy
The S&P 500 minor wave 5 failed to eventuate. However, the Dow Jones did make a marginal new low. The Dow Jones had previously posted in early May a new high and now a marginal new low, whilst the S&P has made a lower high in early May followed by a slightly higher low.
So whilst we have a technical wave 5 failure, the Dow Jones wave 5 should confirm that the S&P500 has also posted its wave 5 low and now we are due to move up into a major wave 4, now that major wave 3 is complete.
In yesterdays post i said “The downside target now remains 1298-1291 with the ideal low around 1291 for a retest of 21 May lows.” Today we reached that target posting a low of 1296.53 triggering my order to close out my current short position and flip the position to long. This was a target also highlighted by the volatility bands for the S&P500 .
A refresh of the larger wave count is now showing a target of around the 1371-1378 region completing a major wave 4 high. This target is in confluence with longer term geometric support (now resistance), Gann angle from the March top, the downward sloping Andrews Pitchfork and also a cyclical time progression high shown by the Natural Cycle.
The Natural Cycle is supportive of further upside into late May and major wave 4 completion.
Today’s target is 1332-1333 after reaching yesterdays downside target.
There is also bullish seasonality for the next 2 days into Memorial Day
Chart Courtesy of: SentimenTrader.com
Yesterday i also mentioned “we could also see a higher dollar today as equities move down into the low as the dollar hugs the upper resistance band” and i posted a target of 22.74 using the volatility bands, today you can see that that upside target was reached at 22.76. Weakness is now expected in the dollar which is supportive of near term higher equities prices.
For the next couple of days i would like to see higher prices confirm the roadmap set out above. So for now its sit back and let the position run.