Last Thursday, March 24, the S&P made a daily close above the potential W.1 or A closing low of 1296 (June ES). As my early in the day March 24 blog post described, this is an overlap and indicates the March 16 low is a Wave-C low, potentially the end of an ABC correction although the S&P may continue in a more complex correction.
The short lookbackk OS weekly momentum at the March 16 low suggested the March 16 low would not just be temporary. The weekly momentum has since made a bullish reversal which suggests the net trend will be sideways to up for at least 2-3 weeks.
With price at the 78.6% retracement for the past few days and the daily momentum OB, we should have at least a 3-5 day corrective decline very soon but the S&P is likely to eventually continue to a new high above the Feb. high.
This blog is not meant to be a trade advisory, but to help you to learn how to use the technnical and trading strategies taught in High Probability Trade Strategies.
Markets can and do anything but the idea is to identify conditions with a high probability outcome and acceptable capital exposure.
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