On a macro view, the direction is a clear for EW bulls. The big questions currently are:
- Which degree are we in
- Is this a wave 1 of 3 or 5 of 1.
Imho this is clearly a wave 1 of 3. Because this is a wave 1 of 3, we should expect deeper prices eventually as a wave 2 normally doesn't retrace to the .382 and we have a lot of imbalance to cover.
On the short term tho, i see a potential B wave setting up before going for the very strong final drop. This coupled with potential FOMC news tomorrow could drive this narrative.
Great entry positions for shorts at the B top, and "ok" long entries for leverage traders wanting a small squeeze.
- Which degree are we in
- Is this a wave 1 of 3 or 5 of 1.
Imho this is clearly a wave 1 of 3. Because this is a wave 1 of 3, we should expect deeper prices eventually as a wave 2 normally doesn't retrace to the .382 and we have a lot of imbalance to cover.
On the short term tho, i see a potential B wave setting up before going for the very strong final drop. This coupled with potential FOMC news tomorrow could drive this narrative.
Great entry positions for shorts at the B top, and "ok" long entries for leverage traders wanting a small squeeze.
Comment:
Still valid ABC as an expanding flat, do not get fooled by the break of support.
Now the big resistance up top wont easily be broken and we can go quite deep even break support (flat) and still go above resistance. Im closing most of my longs around 29650-29830