SPY Continues to Look Like Fall is Imminent
If the "top" of the head and shoulders pattern on the 30th was the end of the bear market rally, we can expect an impulse wave down from there. The first wave of that should be 5 waves down with a 3 wave correction to follow.
From the 30th to the 4th, we did, in fact, see a 5 wave structure down and the ridiculous rallies since look like they might be forming a 3 wave structure back up, especially considering that we are looking to gap higher on the worst unemployment numbers in about a hundred years (lol).
Notice also that we are gapping to just under the 78.6% fib retracement from the high on the 30th to the low on the 4th. That level is SPY 291.51 for precision, so watch that number today. It would be a good place for a reversal as ut makes the first and third legs of the three-legged structure roughly equivalent.
Keep in mind, this 3 wave correction (if that's what it is) is a wave 2. And the bigger retracement you get in 2, the bigger overall structure you can expect for the full wave 3 (which I believe we have begun), so don't be upset by such a strong counter rally. It only means the mic drop will be even more intense once it finally gets going, in like 30 years or whatever. /s
From the 30th to the 4th, we did, in fact, see a 5 wave structure down and the ridiculous rallies since look like they might be forming a 3 wave structure back up, especially considering that we are looking to gap higher on the worst unemployment numbers in about a hundred years (lol).
Notice also that we are gapping to just under the 78.6% fib retracement from the high on the 30th to the low on the 4th. That level is SPY 291.51 for precision, so watch that number today. It would be a good place for a reversal as ut makes the first and third legs of the three-legged structure roughly equivalent.
Keep in mind, this 3 wave correction (if that's what it is) is a wave 2. And the bigger retracement you get in 2, the bigger overall structure you can expect for the full wave 3 (which I believe we have begun), so don't be upset by such a strong counter rally. It only means the mic drop will be even more intense once it finally gets going, in like 30 years or whatever. /s
Trade active:
We hit 291.53 at 9:17 CST, poking just two cents above that fib level. I am looking for a pullback from here.
Trade active:
It's not using that fib as support. Nuts!
Comment:
*Now* using^