Brewing Up for the EOY Rally (5th Wave)
"Trend change! Lower highs making lower lows, the top is in!"
This week and going into the end of October will be an important gauge to see if this holds true or not. SPY has made a decent recovery after being down ~27% last year. But it wasn't an easy ride up. SPY had its correction in February and now in a similar spot since July. The sentiment then is the same now (just noise).
Wave 2 ABC correction vs Wave 4 ABC correction
Both marked the fib extensions only SPY is in a steeper correction now -127.2% (a common fib extension). In my view I would like to see the 1.272 hold and not close below as it looks like SPY is going for the trend change for the start of wave 5. Earnings around the corner, I think this can be the catalyst for our rally into EOY.
This week and going into the end of October will be an important gauge to see if this holds true or not. SPY has made a decent recovery after being down ~27% last year. But it wasn't an easy ride up. SPY had its correction in February and now in a similar spot since July. The sentiment then is the same now (just noise).
Wave 2 ABC correction vs Wave 4 ABC correction
Both marked the fib extensions only SPY is in a steeper correction now -127.2% (a common fib extension). In my view I would like to see the 1.272 hold and not close below as it looks like SPY is going for the trend change for the start of wave 5. Earnings around the corner, I think this can be the catalyst for our rally into EOY.
Note
ES
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.