Three months ago or so I called a likely retracement target back in the 2100 area on the punch over the weekly upper band and a few weeks ago I clarified that as requiring a test of 2109 at minimum to satisfy the stat. That target was finally reached yesterday. I suspect that was the longest time taken to reach that target from my past examples.
SPX is not showing positive divergence on any timeframe yet and I doubt that any kind of meaningful low was made yesterday. I have possible flag support in the 2090 area and on a hard break down I’d again be looking at the 38.2% fib retracement target at 2047. SPX daily chart:
I posted the RUT double top on Friday last week talking about the likely target in the 1140s. RUT hasn’t made that target area yet and I think it most likely will make it before this retracement is over. RUT 60min chart:
The main thing I’m watching here on SPX is the daily lower band ride and positive RSI divergences. Not seeing any reason on either to think that a significant low has been made. I’ll keep you posted.
