SPX continued higher yesterday with no signs of reversing down. Prices were supported and reached our targets from 1625. The higher the index now goes, the less chances for another steep correction similar to 1687-1560. Many still fear the possibility that only one leg of the downward correction is over. Prices however have shown strength and the rise from 1560 has an pattern reinforcing our view for new highs. 1600 is critical support for the intermediate term trend. Prices will find resistance at 1655 and could pull back for a small 38% correction. But I give more chances for the upside scenario with new all time highs ahead.
As shown in the one hour chart below, the price pattern of higher highs and higher lows supports our bullish view and the upward trend that is in command. Bears will at least need to break below 1604 for the short-term bullish scenario to be in danger. As long as prices are above that level we remain intermediate to longer term bullish with targets near 1700 and higher.
Many have asked for the longer term Elliott wave count of my choice in SPX. Although the following chart shows my favorite wave count from 2009, I believe that trading should not be associated with long-term views on the markets. Our psychological endurance to market noise is not an ally when it comes to trade long-term wave counts that are associated with huge stop losses and equally possible alternative wave scenarios.
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As always, thank you for taking the time to read my new post.