In my last update posted on 9 Feb 2019 I wrote:
“I know the pullback last week was a sweet long expected treat for bears. I know there are handful of arguments in favor of breakdown. But so far the support has held. Moreover, structure wise I can argue it needs another move up to a higher high. As long as it stays inside that contracting rising wedge it may grind higher at least to 7,170 but may extend to 7,300.”
Look below at the chart I posted three weeks ago.
I still see the area of 7,300-7,311-7,326 as the main destination of this rally. And the structure off the whole move up off December 2018 looks crappy. If in SPY and RTY I can get signs of a five wave up structure I can’t get anything impulsive from this structure. So far this rally looks corrective and hints for a strong decline after it finally tops out.