ORIGINAL POST: 11:30 AM
SPX might be tracing out either a flag or pennant pattern on the 15-min chart. While either could portend higher prices (2/3 of the time), a flag would mean lower prices first — probably down into the mid 1370s.
At first blush, the market seems to be respecting the last high of 1380.39 on July 19. I suppose it makes for a more positive wave structure.
But, I suspect the bigger worry for bulls is the Fib .786 at 1381.50 (in yellow). This retracement from the 1576 to 666 plunge (Oct 2007 – Mar 2009) was only recently exceeded again, and a real, live bull market shouldn’t have any difficulty retaking and defending it. Here’s the big picture, again:
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