sngyuchao

ES Short: Can the recent up-move be an expanded correction?

Short
CME_MINI:ES1!   S&P 500 E-mini Futures
I was totally baffled by the move on Friday. If you followed my ideas, you will know that I was positioned for a move up in equities. But Friday's move down had cost me quite a bit and my long was stopped out. I continued to probe the market and was whipped by short-term moves. However, I finally settled on a short position.

Let me explain what could happen: I could be wrong again.

But here is how things might explain itself on having a short position: the recent move (circled) could be an expanded correction, signaling that the down move is actually quite strong and thus the corrective B wave moves down beyond the low. Note that C wave failed to breach the high of wave A and that could be the clue of weakness that the market is giving us.

But how could I be wrong, at least technically? I am someone who respects candlewicks a lot. And what happened during the last hour of the cash close has caused a medium candlewick on the chart. Is it strong? I don't believe so (which is why I am publishing this short idea now). Can it reverse? Well, I am not always correct.

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