Trendline Break Through

Today 03/17/22 the S&P 500 (SPX) continued to move above the trendline connecting the supposed wave “two” top – 02/09/22 with the supposed wave “four” top – 03/03/22 of a presumed Elliott wave Ending Diagonal Triangle from the all-time high on 01/04/22.

The daily SPX chart courtesy of Trading  View illustrates  the declining  trendlines.

The declining  red – trendline shows that the presumed Ending Diagonal Triangle still has  a wedge formation.  Evidence from an  internal momentum indicator suggests  that the SPX could soon move out of the wedge.

The daily SPX – Bullish Percent Index ($BPSPX) courtesy of StockCharts.com illustrates  recent bullish strength.

The Bullish  Percent Index  is  a breadth indicator based on the number of stocks on Point & Figure  buy Signals within an index.

The SPX high on 03/17/22 was slightly below the peak made on 03/03/22, yet $BPSPX has blasted far above the high  this  indicator made on 03/03/22.  This  internal strength implies  that the SPX could soon be moving well above its 03/03/22 peak.

As of 03/17/22 the SPX – Elliott wave – Ending Diagonal Triangle count is  still valid,  it could  soon be invalidated.

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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