Advanced Technical Analysis
Note: the following analysis is formulated as an assimilation of Fibonacci, DeMark, Elliott Wave and other technical indicators. It is offered as education and not intended as advice in any way.
Just updating the SPX chart from earlier to reflect the latest price action. And because I said I would attempt to 'predict" how the market would respond to the employment numbers tomorrow, I want to note two things about what the price action is telling us here.
Wave "4" produced a throw-under (a decline below) of the operative channel lines. This suggests that, in this diagonal pattern, a throw-over (a move above) of those channel lines will occur for the 5th wave. And (2) this pattern, what looks very much like an ending diagonal, suggests that once this throw-over is complete a fairly rapid decline could ensue back to the start of this entire pattern at SPX 1184. Most importantly from a risk standpoint, SPX prices cannot exceed SPX 1222 or else this diagonal pattern is morphing into something else.
So from current price action, no matter what the actual employment number is, we expect the SPX to spike up, fail, and end the day much lower tomorrow based on the analysis (not advice). Stay tuned, this should be very interesting.
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