A couple days ago I suggested that SPX was going to just expand below the uptrend line and above the downtrend line. My expectations are continuing to flow accordingly.
The only thing that has me skeptical at this point is how oversold the 4h green wave is. But tae a look at the red, white and yellow wave. They're all curling down. The next rebound in that green wave is going to decide the next few weeks, in my opinion.
Still not focusing on EWT but more on the chart formation, the momentum indicator is oversold and the green wave on the wave master is oversold. If we continue moving sideways and even if we start expanding even a little bit like I have forecasted, it'll allow the green wave to reset a bit and get up into overbought and then we could see a bigger move down instead of up.
Yes, I know my main projection has this moving up, but if that green wave resets and the red/white/yellow waves are still overbought like they are now, we will almost certainly see an expansion type move to the downside.
Not going to get into options premiums and decay but more than likely anybody holding further dated options are going to watch their money slowly disappear as the price action continues to chop for the next few weeks.
Trade carefully and equity is king right now (both long and short style). You may be interested in bear ETFs for things like AAPL and TSLA. Careful with TSLA, though. She's a wildcard but I do believe if the market is going to expand down that AAPL has the best R/R.
The only thing that has me skeptical at this point is how oversold the 4h green wave is. But tae a look at the red, white and yellow wave. They're all curling down. The next rebound in that green wave is going to decide the next few weeks, in my opinion.
Still not focusing on EWT but more on the chart formation, the momentum indicator is oversold and the green wave on the wave master is oversold. If we continue moving sideways and even if we start expanding even a little bit like I have forecasted, it'll allow the green wave to reset a bit and get up into overbought and then we could see a bigger move down instead of up.
Yes, I know my main projection has this moving up, but if that green wave resets and the red/white/yellow waves are still overbought like they are now, we will almost certainly see an expansion type move to the downside.
Not going to get into options premiums and decay but more than likely anybody holding further dated options are going to watch their money slowly disappear as the price action continues to chop for the next few weeks.
Trade carefully and equity is king right now (both long and short style). You may be interested in bear ETFs for things like AAPL and TSLA. Careful with TSLA, though. She's a wildcard but I do believe if the market is going to expand down that AAPL has the best R/R.
