SPX: Follow Up of the Short Term EWP
Despite Friday's Engulfing candlestick, yesterday bears did not achieve an impulsive decline from Friday's hod therefore now odds favor a larger corrective wave (B) off the October 26 lod. This is what the weekly SPX Inverted Hammer was suggesting.
If price is unfolding a countertrend Zig Zag then the equality target is at 1439.12 while the 0.618 retracement of the down leg off the October 18 peak is at 1440.81.
A Zig Zag requires an impulsive up leg off yesterday's lod.
As I mentioned in the weekend update:
"It is an irrefutable fact that the bounce off the October 26 low is corrective hence even if price has not established yet the top of the wave (B) this move will eventually fail."
Therefore I am still expecting a wave (C) down that should complete the Double Zig Zag off the September 14 high.
I guess that we have to wait for the result of the US Presidential elections in order to have a clearer view of how the short-term pattern will resolve.
Let's watch AAPL since yesterday's Harami Cross candlestick suggests a potential short-term bottom.
If price recovers above the 200 d ma then price could fill the gap at 604.