Today played out much as I expected. Some early subminuette (black) wave iv weakness followed by some up to new highs. Then A/H upside squeeze for icing on the cake. Kliguy was right. There are no exit spots for shorts, at least for now heh.
So 869 is looking good for the (X) wave pullback low. And its retracing quite high for the [b] wave portion of a 5-3-5 down. So I *think* this is the beginning stages of the final Minor (blue) ABC rally to P2 peak. Somebody asked in comments what upside targets are. Upside targets to be determined but suffice it to say, high 900's should be obtainable with potential for the 38% mark (1018 I think) or a bit higher. 1044 is my "max" P2 peak spot. So the range for now is 980-1044.
Why do I think this is the start of the final rally? Well the strong upside volume yesterday for one thing. I believe it was a 10-1 up day. But also sentiment charts seem to be at a good support spot. The fact that 900 was regained and the $BPSPX chart is still low leaves a lot of room for a final rally. So for now the puzzle pieces certainly fit together.
The DOW closed above its 200DMA for the first time since its 50/200 DMA "golden cross" 8 trading days ago.
The best way I can describe the price action in traditional T/A terms is that the market is attempting to trace a second right shoulder to match the 2 left shoulders of the big H&S formation. This pattern should keep the bears attention focused and keep everyone off guard for further up moves. The bulls want to push as high above the neckline on this initial green Minute wave [i] up so that any wave [ii] pullback can hold the neckline or even a small break would reverse and squeeze the shorts yet again.
Minute wave [ii] could be a very rapid down move so as to catch every late bull to wave [i] off guard and keep the bears from pouncing. Then the neckline would reverse back up and a power wave [iii] carries the market back to the 940's and above. Anyways that's the general thoughts I have now.
I am again getting ahead of things. For tomorrow a test of 912 at least seems likely. Looking for the top of this initial wave [i] rally.
As a side note, I am taking educated guesses on the degree of wave structure. That may be adjusted up one level depending on how things go.