Bullish Crossover

Today 02/02/22 the S&P 500 (SPX) crossed above 4582.24, the bottom of the supposed Minute wave “i”.  In a standard Elliott impulse wave the fourth wave can not cross into the territory of wave “one.”  This crossover invalidates  the standard impulse wave count and increases  the chance  of a new  SPX  all-time high.

The daily SPX chart courtesy of Trading View illustrates the recent action.

The message from the daily MACD is  mixed.  Today the lines  had a bullish crossover.  However, at the 01/24/22 bottom the Histogram and lines had no bullish divergence.   This  could mean  before a new all-time high is  made, there’s another drop below the 01/24/22 bottom- with a bullish divergence.

Short-term momentum is  bullish implying  higher SPX prices  over the next few trading days.

Hold off on taking long or short positions.  

Longer-term, the evidence implies a  major top for US stocks is  forming.  If so, there could  be several opportunities to establish short positions.  

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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