I’ve only been working with EW theory for slightly more than a year but it would certainly would appear wave three concluded in the area of 2083 and then worked its way up to the possible top of wave five in five waves.
Others have made the same observation but are unwilling to declare a possible end to wave five whereas I am open to the possibility because of the fact that it’s almost a perfect Fib extension and that a 5% move in four days is a rare event; in the past year we have only seen a handful of such moves usually coming off bottoms.
After such a move, in most instances there is a one or two day rest. But what we have just witnessed is unique in the sense we were not coming off a deep bottom, making analysis based upon comparisons exceptionally difficult.
But when combined with EW, VIX in the basement and recent history of market performance following the 4th of July, I’m willing to stick my head out and say we may see limited weakness in the markets on Tuesday and Wednesday before the push higher resumes.
To put technicals and charts aside for a moment.... A lot of financial institutions and money managers lost an unacceptable amount of money due to brexit. As unique as this run up was it could be nothing more than attempts to recoup losses as best they could. Friday saw the utter slamming of the breaks on the recovery and it's possible that short positions flooded in. I'm looking for a pullback early Tuesday to start.
Quantum_Maryland_Capital
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Ditto...........may trade tonight and Monday though I have not checked the hours. But Tuesday is the day on which we might see an "official" pullback.