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January 9th, 2020: SP-500 Chart Update

Posted by pugsma on January 9, 2020

5:15 pm EST:  Today the SP-500 surged higher to 3275 and closed there.   With the break above the 3258 level, the double bottom target of 3304 is confirmed.  All three wave count should at least reach this 3300 target area.

The biggest debate now with respect to the primary (green) versus alternate (blue) wave count is whether this is the end of major [3] or only minor 3 of major [3].  The magnitude of next correction will help to sort this out.

For the primary (green) wave count is wave iii-(5) of minor 5 of major [3]-P5-C1 is playing to a target at 3290, where iii=1.62i.   There should be a small wave iv-(5) correction to the 23% Fib at 3273, before wave v-(5) completes near 3300.   Note that the major [3]=[1] target is 3336.  Once the major [3] wave completes there should be a significant major [4] wave correction to the 23%/38% Fib area of 3196/3105.   Finally major [5]-P5-C1 should reach the 3500 area.

The alternate (blue) wave count is that wave minor 3 of major [3]-P1 is playing out to a very typical Fibonacci extension of minor 3=1.62*minor1 at 3340.   Once minor 3 completes, there should be shallow minor 4 wave correction to the 23% Fib at 3228.  From there minor 5 of major [3], should reach the major [3] target of the 1.23 Fib extension of major [1] at 3476.  Ultimately this alternate (blue) wave count will reach into the 3700 area for the completion of major [5]-P5-C1.

The low probability alternate (red) count remains that the major [5]-P5-C1 wave is topping here at the major [4] wave triangle target range of 3253 to 3327.

SP-500 15-min chart:

SP500 Technical Analysis

SP-500 60-min chart:

SP500 Technical Analysis

SP-500 4-hr chart:

SP500 Technical Analysis

SP-500 daily chart:

SP500 Technical Analysis

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