[S+P500] update

Model from the backlink is below.



As modeled, the S+P found resistance this AM at 2020.  This is by no means confirmed as a solid top yet.  Being a rising wedge it could either be a 3 or a C.   If C then it is C of 4 OR C of 2.  EWI thinks it is C of 4 but if that is the case then I'm not sure how it reconciles with my view that BKX has completed wave 1 down and is now working on 2.  There doesn't have to be a direct correlation but when either of these important indices is entering wave 3 I would expect them both to be in a 3rd wave.  Most everyone is generally moving in unison in a 3rd wave.

While there is still the chance that this can move up to 2036 to fill the gap, I bought UVXY as soon as the S+P touched 2020.  As a result I am more than 4% on that already and what's even more important is that my stops are set 1 penny below the UVXY low which I bought to within a few cents.  Thus I have set my stops and if it goes lower because the S+P wants to gap fill the 2036 then so be it, I lose essentially nothing while standing a chance to make a ton of dough if the S+P begins to plummet on Monday like this model suggests is the most likely course.

This is the power of EW modeling.  It allows at least the chance for entry near the exact low and it allows rapid escape of that low turns out to not be the low.  Neither of these aspects are more important than the other.  Both add up to make EW the most powerful market timing tool on the planet.