Key Levels
Upside -- 1232, 1275-1285
Downside -- 1188, 1143, 1102
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SPX Daily
Not a lot in this chart. If you've been following me for awhile, you should be able to pick out the important things. We popped over the mid-bollingers today, which may mean we have even more short term pop to go and we are obviously correcting that crash of a move over the last few weeks.
I do believe though that we are close to finishing out the first leg of this correction. We will soon be whipsawed back to the downside.
There's 2 options here IMO;
1) We whipsaw back down here soon, maybe starting tomorrow. But its only the 2nd leg of the correction. The correction of the correction. Then we head higher once again to finish the correction somewhere around 1250.
2) We head straight to 1230-1250, then resume plunging straight to new lows from that point.
Elliot Wave would support both potential paths. Unfortunately, those are very different paths.
My challenge now is how/when to start scaling back in short in order not to miss the next big plunge without having to sit on loss too long waiting. Again, I think this is a job for shorting the leveraged bull ETFs.
I am tempted to make this move now and just wait for the next plunge because of how difficult it may be to time this whipsaw. Even if that means sitting on a loss for a bit.
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We got the death cross today. The 50 crossed under the 200 on the daily. It's now obvious although not super convincing yet. Would like to see it dip a little deeper below the 200 before declaring for certain that we are heading into at least a recession.
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Put yer neck braces on.
GL
CJ
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