It appears that SPY has broken out of the IVth wave triangle and is headed to new all time highs in cycle wave V, after which comes a major crash.
As you can see, the triangle is subdivided into 5 waves, A-E, and if this representation is correct, the beginings of the Vth wave bull phase is underway. This is confirmed by the wave structure in minor waves 1 & 3. For the first time, in months, we are seeing non overlapping impulse waves up. I'm labeling this my primary count.
So, is it all clear to new highs? Probably. But the volume isn't perfect. The lack of a confirming volume increase or spike on the upside is a little troubling. Until a minor 5th wave up is confirmed, or the B wave high of 280.41 is taken out, it's possible SPY is still in the D wave of the triangle.
That said, I'll continue with the primary count. SPY is currently in minor wave 3. The corrections on the way up, have been very short. When wave 3 ends, minor wave 4 can be expected to be another small pullback, probably around a . 382 retracement of wave 3. Though unlikely, a move below 267.84 would give credence to the alternate count, that this is wave D.
As you can see, the triangle is subdivided into 5 waves, A-E, and if this representation is correct, the beginings of the Vth wave bull phase is underway. This is confirmed by the wave structure in minor waves 1 & 3. For the first time, in months, we are seeing non overlapping impulse waves up. I'm labeling this my primary count.
So, is it all clear to new highs? Probably. But the volume isn't perfect. The lack of a confirming volume increase or spike on the upside is a little troubling. Until a minor 5th wave up is confirmed, or the B wave high of 280.41 is taken out, it's possible SPY is still in the D wave of the triangle.
That said, I'll continue with the primary count. SPY is currently in minor wave 3. The corrections on the way up, have been very short. When wave 3 ends, minor wave 4 can be expected to be another small pullback, probably around a . 382 retracement of wave 3. Though unlikely, a move below 267.84 would give credence to the alternate count, that this is wave D.
