So this is what happened this week on the daily SPY chart:
We’ve seen a 38.2% retrace after completion of the Gartley pattern. (blue indicator) Which coincided with a bullish PRZ at the 201 level (orange indicator).
This is the minimum requirement, in order to qualify a “potential” new CD leg, as long as the “entry” level of that CD leg is breached on a closing bases. Which occurred today, thanks to Yellen I suppose.
Of course this is no guarantee that the entire leg of this potential new pattern will be consummated.
Observe the following objectives:
- Supply line, connecting the X point and B point, and extended to the right of the chart.
- All Time Highs, which is point X
- D of the AB=CD, can be calculated
And if it falls back below the “entry” at 206.86, the pattern will be “on hold”, and disqualified if it falls below the “C” point, at 199.95.