The market drew these trend lines in the cash S&P500 2-day chart. They are three-touch trend lines. I am just acknowledging them as best I can. Included is an overlap.
If the pattern plays out, confirmation will still be needed. At the moment, trading is awful. Every wave is throwing shade (meaning typical lengths are not being made). Perhaps that will right itself, eventually.
Have an excellent rest of the evening,
TraderJoe
Just a cautionary note. The latest downward wave in the SPX500 (CFD) and in its cash equivalent, the SPY, does not show evidence of breaking a base channel (or Kennedy Channel Technique - KCT) lower yet. So far, the recent down wave has stayed away from the lower channel boundary.
There is a non-zero probability, and maybe a substantial one, this sequence counts as w-x-y, down, and might overall be a (b) wave of some degree, especially being against the lower daily Bollinger Band. The correction from 30 Aug to 1 Sep is at or less than 38%. But because there is no upward overlap yet, we can only look and wait to see if a lower low is made. If one is made, then the whole sequence might count as one impulse with an extended first wave in a wedge. That would be perfectly fine, but the down wave with a lower low must form first to conclude that.
Whereas if a lower low is not made, and the upper channel boundary breaks, first, then it is possible the structure is w-x-y as a larger (b) wave.
Have an excellent rest of the evening.
TraderJoe
