ES Short: S&P Toppish (Prepare to short at 2770.25)
Here's the updated counts for S&P on a Supercycle level:
The last top was a Supercycle wave 3 and the recent down-move is a wave 4. That is not surprising given that we have such an extended wave 3 and Supercycle wave 2 was really short and weak.
This price target that I have given is based on Fibonacci extension on a Supercycle, and intermediate level and minor level. What I am foreseeing is that final wave 5 wil FALL SHORT and won't even reach the top of supercycle wave 3. In fact, the highest I expect it to go will be at "Potential Price Reversal 2" which is 2868.25.
However, the most likely price it will reverse is at 2770.25.
Note that in EW theory, a shortfall in wave 5 can be expected when wave 3 over-extend. A situation we are very much in now. A confirmation with Candlestick when it reaches that price point will add confidence to the short trade.
The last top was a Supercycle wave 3 and the recent down-move is a wave 4. That is not surprising given that we have such an extended wave 3 and Supercycle wave 2 was really short and weak.
This price target that I have given is based on Fibonacci extension on a Supercycle, and intermediate level and minor level. What I am foreseeing is that final wave 5 wil FALL SHORT and won't even reach the top of supercycle wave 3. In fact, the highest I expect it to go will be at "Potential Price Reversal 2" which is 2868.25.
However, the most likely price it will reverse is at 2770.25.
Note that in EW theory, a shortfall in wave 5 can be expected when wave 3 over-extend. A situation we are very much in now. A confirmation with Candlestick when it reaches that price point will add confidence to the short trade.
