The Long Investor
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$SPY TOP 20
🕑 Added 2025-03-11 14:31:24 +0000 UTCIs still in search of support and this can continue until CPI is out this week.
The first big test of this potential correction is coming up shortly with a test of 0.236 Fib at $550, this is a correction pull back level, this does not confirm the correction but it is worth noting how the price action behaves on this level, if it treats it as a support level then the price action is moving in a corrective manner....so if the response from the CPI data is not positve then a drop down to the 0.38 Fib at $511 can be expected next to complete Wave A and the correction is confirmed.
Bulls needs to get back up to the 200 Day MA, this is very clear, they need to at least attempt to retest this level from below.
A rejection at this level and we are confirming the correction.
Comments
Kad
Was a super learning for me, thanks for the good question Kyle and thanks for the clarification Cap!
Kyle Davis
Thanks! didn't put the diagonals into consideration
Gareth Neary
Remember in a Wave 5, we can have an ending diagonal, where Waves overlap each other so there is infringement rule.....this is also in Wave 1 as a leading diagonal. The important point about that is that the market has now identified that it is at least at the end of an impulse wave.....so one more melt up is possible but whatever happens, the ABC correction is certainly going to happen soon
Kad
Very good question, hope we get some clarification on that
Dante
And do you think this wave 4 will be around a year? Wave 3 was pretty strong, don't you think wave 4 could be shorter?
Kyle Davis
Cap - Can you confirm if I'm interpreting this chart correctly? Wave 5 in the larger frame is still valid only if there's a bounce off the .236 fib. The subwave has been invalidated due to the infringement of wave 1. if the price fell below the .236 fib and there was a bounce higher, would that be the start of corrective wave 2 or B, on the way to A(.382 fib)? If the price held above .382 fib, would we consider that a B bounce or the start of a new impulse wave?
