On a weekly chart of the cash S&P index we can count enough waves to consider its structure complete. As you can see, the final push up has overshot the overhead trend line that managed to keep S&P inside an upward sloped channel for years. That is a normal phenomenon when the market makes the final exhaustion thrust after multi year rally. The paradox is that the final segment of the rally is when retail investors who have been sitting on sidelines go all in. This is why very often final push higher is accompanied by very light trading volume. As analysts like to say “the market goes up on fumes”.
On a daily chart below I show a micro structure of the final leg up in subwave (C) of wave ( 5 ) up that started back in June 2020. That rally should be subdivided into five waves and we can perfectly count those waves completed.
On 30 min chart below I show a micro (a)-(b)-(c) up structure of the final micro wave ( v ) of ( C ) of ( 5 ).
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