As the really “smart” people debate in the media and in print about what the Fed is going to do tomorrow and how it will affect our market, I am not smart enough to understand much about what they claim is “important” to determine market direction.
So, I am forced to keep it quite simple. To that end, I still have two questions that I am asking:
1 - Do I have a CLEARLY completed 5-wave structure off the recent highs?
2 - Have we convincingly broken below 2950SPX?
The answer to question 1 is that I can count 5 waves down in the SPX, but I do not have a comparable structure in the futures. Therefore, I cannot say I have a CLEARLY completed 5-wave structure off the recent highs.
As far as the answer to question 2, I think we all know that answer.
Now, please don’t get me wrong. We have the minimum number of waves in place to substantiate a completed b-wave structure. However, I cannot say we have any other indications clearly evident to suggest the top has yet been struck.
However, since I do not have a clearly completed 5-wave structure in place, and we remain over 2950SPX, I have to still look higher before I can view this b-wave pattern as completed.