The previous SPX chart showed the bigger picture for the next few years....
but what about now? Here we are in the month of May 2020.
Where could we place a high probability short?
This chart shows 2 possible trails (in pink) to get to the sell zone shown in red.
Of interest is the possible Bat pattern shown in blue which might make
a C=.618 x A wave pattern and an 88.6% retracement of the March sell off.
Next we see the possible set up for a Gartley pattern where the market retraces 78.6% of the March sell off.
This pattern would end near the black resistance line shown. This line is formidable resistance
with powerful deflections on the Jan 2018 high, Oct 2018 high and the July 2019 high.
Also note the "hesitation" in the price as it broke down in March at the line....
something about that black resistance line....hmmm....
get ready to short ;)
but what about now? Here we are in the month of May 2020.
Where could we place a high probability short?
This chart shows 2 possible trails (in pink) to get to the sell zone shown in red.
Of interest is the possible Bat pattern shown in blue which might make
a C=.618 x A wave pattern and an 88.6% retracement of the March sell off.
Next we see the possible set up for a Gartley pattern where the market retraces 78.6% of the March sell off.
This pattern would end near the black resistance line shown. This line is formidable resistance
with powerful deflections on the Jan 2018 high, Oct 2018 high and the July 2019 high.
Also note the "hesitation" in the price as it broke down in March at the line....
something about that black resistance line....hmmm....
get ready to short ;)