SPY chart discussion

The following is a chart of the SPY

Courtesy of eSignal

There are multiple things going on and now is probably the best time to discuss them.
Picasso expects a high in the area of 2/6-8 and a low in the area of 2/11-16.
In the chart above you can see that a bearish impulse wave is labeled from the 11/3 high and currently it is trying to complete wave 4.  If this wave count is correct, then we should expect wave 5 to form with a drop below the 181.02 low made on 1/20.  This scenario including the wave count and the Picasso dates seem to fit well.  Now we just have to wait until the blue bars turn red and one bar closes below 185.70 (as of today, this price may change over time).  in addition, it would also help to see a crossover of the blue & red lines in the bottom widow.
If this does happen this way, it would also be following the Average Election Year Price Pattern that you can review again on this Blog on Jan 13th.   You will then see that the Average Election Year Price Pattern indicates that after a February bottom develops, the market could possibly rally into April +/-.   As we get closer to that time frame Picasso will be consulted so the cycle dates can be checked and compared, but, first we have to get through February.

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