Reaching The Ellipse On The SPX Chart

Here's what I wrote yesterday at 11:50 Eastern:  "The 5 min MACD is trying to curl up already.  Seems a bit early to me.  So, just stay on your toes, as once this downside completes, assuming this is indeed an ending diagonal for this 5th wave, we should see a very strong reversal which can take us back towards the ellipse overhead.  Remember, when an ending diagonal completes, it often goes back towards the region from which it began."

And here's the SPX chart at the time: 

Pretty impressive move . . we are at the ellipse now.  And, as per the EW theoretical perspective of diagonals, this was well expected in a FAST move up, as I outlined yesterday.

Avi Gilburt is founder of