Morning Update

The S&P 500 Update Daily Chart

The SPX remains in its reverse symmetrical triangle or expanding triangle on the daily chart. Whether it turns out to be a reversal or continuation pattern remains to be seen. The characteristics of both patterns are identical. There is always an evil twin. In the mean time we have to wait and see which way the patterns resolves itself. The past month has been tough, because we have traded sideways for so long. The good news is that after long periods of trading sideways (consolidating) we will move into a trending market either way. It will start trending up or down so we still have to wait and see. However, we are seeing a lot of signs that we could see and explosive move upwards.

The S&P 500 Update 60 Minute Chart

We have broken out of the wedge and although the count appears suspect it does appear to be the best fit. If, in terms of Elliott Wave, this a wave 3 of 4, once we get into wave 5 the upside will be limited to 1304 or 1330. However, if this turns out to be a wave 3 of 3 pattern the upside could be really significant and higher than mentioned.

The S&P 500 in Euro and in Pound Sterling

The SPX in Euro and in Pound signals that international money is beginning to see more value in US equity. The SP500 is breaking out to new 52 highs in Euros and Pounds. There is no bearish divergence whatsoever in the indicators. Just look at the PPO turning bullish. (However, if the US dollar tanks then that would change things.)

The S&P SPDRs (SPY)

The SPY pattern remains intact and bullish despite a lack of movement for the past four months. The pullback has been on light volume which is bullish. The chart is also gaining momentum as it has broken above the downtrend line and heading upwards towards it's old 52 week high of 129.44. This ascending triangle pattern indictes a possible explosive move up due to the frustration that it causes investors.