$SPX 60 Minute: Yesterday, I labeled the abc below as 123 and said I was looking for a wave 4 down with the MACD finishing below the zero line. That might be playing out, but I want to show the abc structure because it's viable. If we push down to 1,300 before a new high and create over lapping then it might be abc up.
$SPX Daily: If it's abc up on the 60 minute then the ABCDE wedge pattern is still a viable alternative. I thought it was dead, but Mr. Market is still doing an excellent job of concealment. In fact, abc up could be 5 waves up in a truncated move. And we could still be building a small wave 4, if so, the 50 day MA should hold and price bounce and soon. I raise these thoughts from the risk management side of trading, in that we have too many viable options, at least for me. I want to see more pricing data eliminate some options and provide a little better near term view before I make the next trade.
$SPX Weekly: On the weekly chart the MACD is trying to turn back down, and if this is the case it supports the wedge pattern structure to some degree, and I've drawn what that might look like on the weekly.
My Watch List: The market pushed so far downward today that it's really in No Man's Land. We need price to move and pick a structure or at least eliminate some options. So, I'm going to continue for at least another day with no charts for trading.
From My Trading Desk: No trades on Monday.
Note: If it is a wedge (ABCDE) pattern, how likely do we get a debt ceiling resolution right as wave E makes a bottom when the MACD is close to the zero line? I think very likely! Just a little something for the back of your head, nothing I'm trading currently.
Happy Trading
J.D. Rosendahl, Rosey