With the assumption that we have made wave 1 on the macro level with this being the top, then we are having the ABC retracement. We can assume that we can have a moderate correction or a deep one.
For now, the projection is the 0.382 retracement level which has confluence with the Weekly 21 EMA; If it was to be deeper, then the 0.5 to 0.618 EMA level which has confluence with the weekly 50 or 100 EMA;
For now, we are in an uptrend and hence the 21 weekly EMA is more probable for ABC completion with a bounce at this level as its on a support line along with confluence on the fib. retracement for this impulse and the 50 daily EMA. Possibly testing the new high;
The question is if it was to bounce, how high will it go will determine the size of the ABC correction;
With this in mind, I'm also looking at BTC to follow suit;
Lets keep an eye on this to a) anticipate BTC levels and b) review and take lessons from the outcome.
Please give me a like or tick for this post.
Regards, S.SAri.
Daily Weekly
Note on the daily, no bearish divergence but its on the weekly
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as per the script
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How are we tracking, As I said, if we did wave 5 then this is the ABC correction, then we are on script.
@plancton0618, Apparently there is a report showing dumb money to be fearful and not bullish and hence its therefore likely that SP500 will go up.
Note the USD index is dropping. All good for a nice price rally.