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January 25th, 2016: SP-500 EOD Update

Posted by pugsma on January 25, 2016

5:45 pm EST:  The SP-500 price turned around today right at the 1905/1926 pivot area that was forecast.

The primary (red) count is that Primary B (PB) of Cycle 2 (C2) wave topped at 2116 and has begun the Primary C (PC) of Cycle 2 (C2) wave headed to the 1575 pivot target area.   Within PC, the major [1] wave completed at the 1812 at the 1814 pivot area.   The major [2] wave Fibonacci retrace of 50%/62% to the 1964/2000 area is underway.  Major [2] in simplest form will be a minor A-B-C Zig-Zag.  The first 5-wave minute degree move for minor A reached the 1905 pivot area (1909).  Now the 3-wave minor B wave down to 38%/50% retrace (1872/1861) is underway that should hold above the 1849 pivot.  Once minor B completes, the should be another 5-wave move for minor C to the 1956 pivot area to complete major [2].   Once major [2] completes, the major [3] wave down begins a massive sell-off toward the PC-C2 target of 1575/1401.  The primary (red) count remains valid as long as the major [2] wave remains below the PB-C2 high of 2116.

The alternate (blue) count is that major [1]-PC-C2 just completed the minor 4 of major [1] wave at 1909 just shy of the 38% retrace of 1922.  Now the minor 5 wave needs to make one more low below 1812 to complete minor 5 of major [1] at the 1775 pivot.  A break below the 1849 pivot should confirm the alternate (blue) count headed below 1812.

Note the large, 2 year old, Head and Shoulders Topping Pattern that has formed on the SP-500 daily chart with Head at 2135, Neckline at 1820 and Price Target of 1820 – (2135-1820) = 1505.  The major [2]-PC bounce to 1964/2000 should form the 2nd Right Shoulder (RS2) to match LS2 at 2013 from August 2014.

SP-500 15-min chart (EOD):

PUG SP-500 15-min EOD 1-25-16

SP-500 60-min chart (EOD):

PUG SP-500 60-min EOD 1-25-16

SP-500 4-hr chart (EOD):

PUG SP-500 4-hr EOD 1-25-16

SP-500 daily chart (EOD):

PUG SP-500 daily EOD 1-25-16

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