Very high probability to day is down.
Decline today could be moderate, maybe 10 -12 SPX points.
If the count is correct it sets up a very big down day on 1/6/17 - US Employment report.
Very good risk/reward for SPX trades on today's 1/5/17 open .
Place stops for shorts above SPX 22273.80
The drop from 82 to 65 was encouraging for that scenario, but the sudden rebound back to the 79 area brings the outlook into doubt. It can still decline to the 52/4 target area but I think there's less certainty of that now. I took profits on the first drop as I was expecting a small bounce. Just removed my other shorts for b/e. Happy to stand aside until the pattern becomes a higher probability play.
I will have a new SPX/NDX update in a few hours.
Thanks for the information.
The bulls are relentless. I will have a new post in a few hours.
If so, SPX will now decline in wave C. The ideal target is the 54/6 area, although a 61.8 retrace will be 52/3. So somewhere in that area should complete the FLAT for wave 4.
If all this comes about, I think SPX will then rise to my original 2313/7 target area in wave 5 and will likely reach that target area around the time of the inauguration.
Congratulations on a great call for the SPX to reach 2280 - 2283!