I have identified the market to be in a running triangle. You can see how the first 4 waves of this triangle subdivides into 3 wave structures. Right now the market is completing the "D" wave. This wave can rise even further to all time highs. If this does occur then this will become an "expanded triangle."
However, this wave can end at any moment, thus starting the E wave down. While there might be some more room to the upside, I believe the most money can be made by trading the E wave, specifically the 3rd wave down in the E wave. The safest play would be to wait for first 2 waves to form in the E wave and then setting up a trade for the 3rd wave down to test the lows.
After completing the E wave I do expect the market to bounce and test this year's highs again. At this point the triangle can be counted as complete because the market will have created at least 5 waves. If the triangle is complete the bull market will resume.
However, this wave can end at any moment, thus starting the E wave down. While there might be some more room to the upside, I believe the most money can be made by trading the E wave, specifically the 3rd wave down in the E wave. The safest play would be to wait for first 2 waves to form in the E wave and then setting up a trade for the 3rd wave down to test the lows.
After completing the E wave I do expect the market to bounce and test this year's highs again. At this point the triangle can be counted as complete because the market will have created at least 5 waves. If the triangle is complete the bull market will resume.
Comment:
Nothing has changed for this set up... Still waiting for a bounce up for a 2nd wave to begin a short position. No need to rush this trade as this can take up to a couple months to fully reach target