SPX 120 minute
Both charts reveal the index to be in a terminal 5th Wave with divergences in the Elliott Oscillator (bottom indicator). However, both remain in Trend Model LONG mode. The conclusion drawn from all of this is that while the rally is still in force, the pattern is consistent with the end of 5 waves up to be followed by at a minimum, a significant ABC correction. What will trigger it?
My working hypothesis is an SPX 240 minute Key Reversal Trend Sell Signal.
But the 60 minute and 120 minute models must turn down first and that has yet to happen. When those flip, I will be on high alert to go SHORT.
IWM 240 minute
A broader measure of market momentum, the Russell 2000 showing the same divergences but much closer to turning down. This index may be a leading indicator of the expected turn down in the SPX. But like the SPX above, this index is still in an uptrend and until it flips Short, all of this remains idle speculation.