The miniscule weakness in the market yesterday is quickly escalating into trivial. The gap between the Friday high and Monday has been filled – I’m not sure that counts.
The neckline of the bottoming formation is at 341. A pop above the neckline can be estimated to travel the same distance as the low to the neckline. Say that comes out to 21, then SPY might be expected to go to about 362.
If SPY tops out here that’s a little problem, but in any case, attention has to be paid to the 357 early September high. That could be a double top forming or a rising wedge if it pokes above.
Obviously, the way to have played this advance was to follow the signals. xCC is the most volatile of the xC xF combinations and those unfilled gaps are of some concern.
