We are now approaching confluence of trendlines and FIB boxes, and RSI divergence. There is enough going on here to warrant some kind of corrective structure.
The two main counts are shown on the chart and IMHO YELLOW has a slightly higher probability. But the huge CYAN A-B-C is possible as well and we need to keep considering it.
So far the structure is following a classics short/ squeeze short covering smooth spike. How long can this continue in the indices is hard to determine, I think we will see more float up on pure momentum into Wednesday morning hit around 3800 then a turn lower mid-day.
Then its decision time. will the short squeeze spike down impulsively (yellow), or does price find support proving this upward move has more behind it (Cyan). ??
??
The two main counts are shown on the chart and IMHO YELLOW has a slightly higher probability. But the huge CYAN A-B-C is possible as well and we need to keep considering it.
So far the structure is following a classics short/ squeeze short covering smooth spike. How long can this continue in the indices is hard to determine, I think we will see more float up on pure momentum into Wednesday morning hit around 3800 then a turn lower mid-day.
Then its decision time. will the short squeeze spike down impulsively (yellow), or does price find support proving this upward move has more behind it (Cyan). ??
??
Comment:
IF any of the above occurs this dos not necessary invalidate the other path, so use only small positions, or wait until Monday
FOR YELLOW (If the weekly cycle holds). Thursday should be flat / sideways or slightly up, as market makers redistribute positions for downward move for Friday and Monday.
FOR CYAN weekly cycle we might see a sharper move lower on Thursday/ Friday morning, with an impulse move starting Friday midday and on to Monday.
But these are just my thoughts do your own due dill