I.I. alerted its premium members already 2 days ago about the possibility of an irregular flat correction forming, and what did we get!?!? A picture perfect irregular flat and blast off from SPX 1978. In addition, I.I. alerted its premium members yesterday that based on several market breadth indicators a trade-able bottom was at hand. Thus I.I. members are often 1 step ahead of the curve and I.I. added more to its long positions today at the open and yesterday at the close. Sign up here if you want that “insider, “one-step-ahead” information too. Enough chest-pounding. Let’s look at the SPX. Minor 2 is with all likely hood in, and using a simple but common bull-flag pattern we can predict that the next uptrend should reach around 2085: 1905 to 2010 = 105 points. 1980 + 105 = 2085. Of course it will not be a straight shot, since minor 3 will consist of 5 minute waves. We will count these along the way. For now, it could mean that minor 3 will equal minor 1. But, the minute waves will tell us eventually where minor 3 will end.
(click to enlarge)
Not shown is the DOW, but if you pull up a chart and put the bollinger bands on the price chart you will see these start to expand based on today’s price action. I already forewarned several days ago that the recent bollinger band squeeze was forewarning of a larger move to come. Using OEW, market internals, etc we can then with more confidence foretell what the direction will be. In this case: UP. Hence why I.I. bought today’s bottom. Only a drop below SPX 1978 will turn me bearish.
That’s all there is for it for now. Simplify, don’t over think.