Source: thewavetrading: SPX: Follow Up of the Short Term EWP | The wave trading

I know, lately my daily updates are getting really boring, but I cannot change my scenario.

There is no change:

The probability of a pullback is overwhelmingly much higher than the odds that the up leg form the December 31 has much more business to the upside.

I have recently discussed that momentum end breadth indicators are strongly suggesting that the most likely outcome has to be a correction, but price so far has denied the unavoidable event. Maybe tomorrow´s FOMC has something to do with this market behaviour.

I remain confident that the recent price action is carving out a short-term top but at the same time I remain wary of expecting a large correction, since if my preferred count is correct, from the November lows, price is unfolding a Double Zig Zag, which still needs one more wave (C) up, therefore I am expecting a wave (B) pullback.

As I have discussed in my last weekend up date, NDX should have already begun a technical pullback with a target in the range of the trend line support (From the November lows) – January 2 gap fill = 2675 – 2660.93

Regarding SPX the overlapping internal structure of the pattern unfolded in the last few days suggests that price is either unfolding:

a)   Triangle:

b)   Ending Diagonal:

The short-term pivot support is at 1495.33

If bulls today fail to achieve another higher high we can make the case of an already complete Ending Diagonal.

Although yesterday´s high CPCE reading does not favour the complete ED option

Regarding the target of the assumed wave (B) pullback I expect a bottom in the range 1474 – 1451

VIX, which is now clearly diverging, is suggesting that equity market should be close to a reversal.