Well, its hard to call it much better than it unfolded today. Now all we have to see is what happens tomorrow. Opex days have generally been bullish days due to the all the puts that have been written during the downturns that the MM would like to have them expire worthless. The top chart is a 60 min chart so that you can see the broad trendlines at play. We tested two very important trendlines today. Should these hold, then we should test the upper trendline (pink) around SPX 960 in the coming days.
The 2nd chart is a close up of today's action (5 min bars) and shows the relationships between the waves. This is another reason why I have confidence in the pending move. I did open up small long positions near the low of the day (and closed most of my short positions) but since I have yet to see any key divergences (ABC moves sometimes do not give divergences), I wasn't ready to go 100% long. There are a lot of S&P points to be made between here and 960 and I would rather be cautious than lose hard earned money at this stage. So I will wait for this up move to show itself (it should look impulsive), then I will close out my remaining shorts and go 100% long. Tomorrow we will likely see a gap up, a backfill and retest, and if that holds, then we're likely off to the races.
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