The market has gotten itself into a bit of a hole of late. But, today, it is trying to scratch its way back out of the hole.
As I write this update, we are now hitting our head on the first resistance region in the 3960SPX region. Assuming that the bottom has finally been struck for this recent decline from 4325, then it is likely this is the a-wave of the [a] wave I am tracking. Therefore, what we will need to see is a corrective pullback from this resistance, followed by a break out through resistance, with an ideal target in the 4050SPX region.
Remember, typically, the [a] wave of a retracement targets the .382 retracement of the prior decliner, and that is why I have the 4050SPX region as our next target, should we be able to break out through 3960SPX.
And, as a little reminder, I just want to repeat something I posted in an alert today:
“So, as you can tell, there are still a lot of pitfalls and obstacles for the bulls. This is not a time to be a hero and try to squeak out every penny of the upside. Now is a time for patience and to allow the market to show us how its next 500+ point move is going to take shape.”