Yesterday I had been working under the assumption that the declining pattern was not yet over. I was wrong. The EW pattern from the top was a rare 3-3-3 (A-B-C) pattern that confounded all the analysts. I had proposed the pattern, but had anticipated a 3-3-5 decline, which never materialized.

SPX is now in an Intermediate Wave (B), which may not be finished. It has trached the 38.2% retracement at 1678.32, but could attempt the 50% retracement at 1688.17 or even the 61.8% retracement at 1697.76. There are two more resistances in the midst of these Fib relationships that may also be stoppers for this rally if it is not yet finished.

This has eliminated the Head & Shoulders pattern that I had proposed earlier, but not the Cup with Handle formation, which allows throw-backs.

Hopefully, there may be no more new surprises.

Regards,

Tony

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