The 5-3-5 pattern is emerging, with the C wave 5-impulse remaining to fill;
Bear market rally 'B' wave has taken form of a WXYXZ 3-3-3 minute wave pattern, 3 counter waves each in turn consisting of 3 minute waves (minute labels omitted for clarity); the double topping near the 0.62 Fibo is ominous;
100% extension of A wave by 'C' is shown; the 0.62 extension would bottom at ~2140; the 1.24 extension would reach 1400 index price; NB , below: IF 'C' wave reaches 1.62 extension of A, then it likely represents the Third wave of an impulsive 5-wave correction, which would imply a crash to extreme low prices:
This is just an idea for your amusement and education; trade at your own risk; reference:
Education; from https://elliottwave-forecast.com/elliott...
• is a corrective 3 waves structure labelled as
• Subdivision of wave A and C is 5 waves, either impulse or diagonal
• Wave B can be any corrective structure
• is a 5-3-5 structure
Fibonacci Ratio Relationship
• Wave B = 50%, 61.8%, 76.4% or 85.4% of wave A
• Wave C = 61.8%, 100%, or 123.6% of wave A
• If wave C = 161.8% of wave A, wave C can be a wave 3 of a 5 waves impulse. Thus, one way to label between and impulse is whether the third swing has extension or not
Volume on the pump 4/29 is even less than previous sessions. VIX remains over 30, at 31+ it picked up off LOTD even given the high prices. RSI diverges. Bull trap IMO.
Going into May & June contracts on QQQ in Friday trade, short the rallies IMO.
This why you don't hold these ETFs... they decay:
Not betting on the bounce in face of bearish news but technically some relief rally likely IMO.
By the grace of God I was in cash... I feel your pain Bears, and I'm afraid there's more to come as the short squeeze tightens... we are clearly in recession, yet the Bulls have gone nuts, is this the last gasp? Or a start of wild run to new ATH?!? Madness!
Back at the Fibo again... and 100 pips above the gap, which must fill... but when? Bit more squeeze left in it IMO, could get to 3k again this week.
In SPY Jun05 295P, short 05/20 dailies at 291 strike.