Dow Jones Industrial Average: +155.91 or 1.67% at 9505.96
S&P 500 Index: +18.76 or 1.86% at 1026.13
NASDAQ Composite Index: +31.68 or 1.59% at 2020.19
NYSE Internals: 2467 Advance. 585 Decline.
We pretty much just blew through all types of resistance today, and we really have no resistance till about 1044 on the SPX. Which is about another 2% or so.
We broke through 101.64 and 102.03 on SPY today, and I don't expect a solid backtest of those prices in the near future. I think we are pretty much headed straight up to 105-106 area. With very little pullbacks. After all, Wave C needs to have some similarity to Wave A, and I'm sure we all remember how this rally started back in early July.
I've kind of mapped out how I think this last leg up of the rally will look like. I think 105-106 is a good area of it to end, but we have all the possibilities in the world to get to 110+, which I don't want to throw out. But 105.50 has some good Fibonacci relationships as to where this Primary Wave 2 rally should end.
^ I still believe that we are going to form some type of Bearish Rising Wedge.
We have some pretty clear cut negative divergence on the daily chart too, but it still has a little bit more room to diverge, which should put us right at or around SPX 1044. We also hit the top of the wedge today.
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