It's cliché to be a stock market bear these days but I find it healthy to attempt to do so so long as there is a wave count and reference level one can stick to.
Turning to the chart, it appears we are struggling to break through to new highs in the $3,000+ area. This could suggest one of two things: (1) as shown in yellow, that the entire move up from the Christmas Low is a wave B of an expanded flat requiring another retest of the Low; or (2) as shown in green, that the move up from the June low is a wave B of an expanded flat requiring a significant drop in order to push to new ATHs in the short-term.
*Assuming the U.S. Index is bearish* (by staying under 3005) we would know the severity of the drop to be expected at around the 2666 level.
This setup has been triggered on the 4H by what appears to be a running ABC correction pictured below.
Turning to the chart, it appears we are struggling to break through to new highs in the $3,000+ area. This could suggest one of two things: (1) as shown in yellow, that the entire move up from the Christmas Low is a wave B of an expanded flat requiring another retest of the Low; or (2) as shown in green, that the move up from the June low is a wave B of an expanded flat requiring a significant drop in order to push to new ATHs in the short-term.
*Assuming the U.S. Index is bearish* (by staying under 3005) we would know the severity of the drop to be expected at around the 2666 level.
This setup has been triggered on the 4H by what appears to be a running ABC correction pictured below.
Comment:
Running ABC Correction Below. The STOP LOSS on this idea is a close above 3005 on an hourly basis.
Trade closed: stop reached:
Holding off until 3041 before any further short attempts.
Trade active:
rejected pretty hard from 3024.3
Comment: