SPX update: diagonal forming? Or was 2009 it? Using the WLSH5000 for form

Sometimes it helps to look away to understand what you are looking it. In this case, let’s see what the WLS5000 tells us. Given the overlapping nature of the price action over the last 4 days, with a higher high and high low bias, it appears a diagonal triangle is forming (abcde) for minor 5, with minute a through d completed and now minute e should follow. Alternatively, price peaked this morning for minor 5, which would in this case mean a Primary III high at 2009. The next 2 days will be very telling. Note that even in the case of the (preferred) triangle formation, price only needs to make a marginal new high (can we say 2014?! 😉 ) to complete the formation, and will then reverse hard.

WLSH5 09032014

 

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