SPX: Bullish Inverse H&S

Since completing the Bearish Wolfe Wave, at Wave#6, and since breaking below the bottom of the late December Ascending Triangle on January 14 (the near-horizontal yellow line), the SPX has been basing, and has formed a Bullish Inverse H&S pattern.

The SPX futures currently are up 17 points, so if that holds up we'll have a Breakaway Gap out of the pattern which will put a target of roughly SPX 900 IN PLAY. Targets against the dominant trend, which is bearish, are less likely to be achieved, so keep that in mind and "take profits when targets get MADE."

As long as the SPX trades above the neckline, the first target is 857.07-858.13, the December 29 low and the January 16 high, respectively. 858.13 is the first data point of the neckline of the Bullish Inverse H&S pattern.

The next target is the bottom of the broken Ascending Triangle (the near-horizontal yellow trendline), which comes in today on the daily chart at 868.51. The 50DMA currently is 868.388, and declining, so it's very near that trendline.