SPX
At the moment, it not guaranteed if markets can go higher next week. This time we don’t have a secure pattern. Cyclical analysis is calling for higher into April 30th and Open Interest is projecting higher into the end of this week, May 4th. I like the way daily stochastics are positioned, they will provide strength in case markets decide to follow the open interest projections to the upside.
EW Analysis:
On Tuesday April 24th, based on the .618 extension that was being hit on SPX as shown in the following chart
We, across the board, warned that the excessive confidence of the bears would have to be examined and on Wednesday again, we, in the general Chat Room, warned that markets were to face the 3rd of the 3rd off the 2611.2 lows. So while we maintain that the $SPX should see the 2468 level and potentially lower we have taken an unbiased attitude looking for any evidence that shows our case for lower is wrong, evidence that allows us to capitalize on any potential truncation.
We continue monitoring $AMZN which ideally should hold 1551/1542 in order to continue advancing toward 1721/1770 area. We continue advising you that $AMZN is a must hold company, I have said this to you many times and I expect to be right again while 1540 area holds and retakes highs of this week.
Current $SPX:
The case for higher on $SPX only can be constructed this way shown in the following chart:
another ABC that should take the market higher to 2775 and 2757, the resistance at 2714 is relatively important so reversal from this area should be watched in order to confirm any impulse to the downside.
Immediate pattern has support at 2742 and 2666.1; I will add more if we see one of these levels, at the moment we need more price action with base calling for 2468 but needing a move to 2757 in a C wave up.
QQQ, three up off the lows, needing to hold 160.63 and print one more high in order to confirm five up off the lows that allow us to buy a potential retrace in wave 2.
Enjoy rest of the week and do not forget to not overreact, stay patient and focused.
See you in chat room
