A political chess game is being played between Putin and the West. Of course, this has sent the futures soaring, but not to new highs…yet. Of course nothing has changed on the ground in the Ukraine.
This gamesmanship has the ability to change the pattern of the markets, as well. Not everyone is confident that the Russians are really backing down. If the market fails to make a new high, then the pattern on the chart will be the correct one.
However, if the SPX makes a new high, then [y]-[x]-[z] becomes [y]. Yesterday’s low becomes [x] and there will be a new zigzag Wave [z]. That’s the nature of a zigzag. It can replicate itself again.
Today and tomorrow are both Pivot days, so it suggests that a new zigzag may be done by tomorrow.