I remember a reader describing me a few years ago as an ‘if, then’ analyst, and that was a pretty decent description, as nothing is ever certain and markets move from one inflection point to the next, where there is another ‘if, then’ decision to be made.
I was talking in my last post about the possibility that SPX would break up into a high retest, and it did, so the H&S is no longer forming, and the setup on SPX is now a possible nested double top setup. I went though decades of charts on SPX a few years ago and calculated that some 70% of highs and lows on SPX were some kind of double top or bottom so that isn’t necessarily bullish so far.
In the short term a very decent quality rising wedge has formed from the last low at 4164, so I’m expecting that to break down and at least deliver a retracement. If we see a retracement back to the 4164 low, that is now double top support on the smaller of the two nested double top setups.
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