This update reviews the SPY’s current market structure and pattern development using orthodox NEoWave logic and analysis.
SPY is completing a 26-year running bear market correction which everyone thought was the “bull market”. We need to get through the end of Wave-(4) which is completing wave-E then the real bull market will begin.
2.5 Yearly Chart
Purple (higher degree):
Impulse wave topped in 2000 and commenced a 26-year running correction marked here as wave-(4).
Purple trend (Wave 3)= UP
Blue (lower degree):
Wave-E of (4) has been tracing out an ABC pattern in opposition to the larger trend.
Blue trend= DOWN
6-Monthly Chart
A closer look at Wave-(4) shows that wave-E is finishing up a Neutral Triangle. When its finished Wave-(5) should commence with all degrees going to the upside and a very powerful upside potential.
Monthly Chart
Zooming in on Wave-E of (4) yet another Neutral Triangle is forming and nearing completion. Fractals are common as the pattern repeats itself.
Weekly Chart
A closer look at the developing Wave-(e) of E:
Wave-b of (e) was a strong running correction lifting the market higher.
Wave-c of (e) is going against the trend so you should see bouts of downside action but there is no guarantee the market will make it down to where wave-c is marked.
Bottom Line
SPY is completing a 26-year running bear market correction. We need to get through the end of Wave-(4) which is completing wave-E then the real bull market will begin.