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vergun
Mar 15, 2019 9:18 PM

Small drop now. Big drop later. On the S&P. 

SPDR S&P 500 ETF TRUSTArca

Description

Charting the 5-wave extension of this move, we can see that we're currently topping on Wave A of 5.

What's to come, is a small B of 5 move down, then a C of 5 move up.

The target for the B of 5 move down is $276. Where we'll likely find support and start the final push for this impulse move higher.

Likely targets to the upside include $285.35 and $292.

In either of those scenarios, we'll have completed the 5 wave impulse move upward and begin an A-B-C correction to the downside. The completion of the 5 wave pattern is the best place to enter shorts. One could also enter a long position at the $276 position.

All this will likely happen over the next one to two weeks, positioning us up for a great short setup come April.

Lastly, it's also possible for the current move to hit the $284 target of Wave C of 5, but it looks like it's already topping as we are here.

Comments
Sintar123
I'm seeing the same thing, except I'm not counting this as an impulse but as a corrective rally so I'm expecting a much bigger drop.
vergun
@coolioyo, yes it could be that we come just shy of breaking the all time high, in that case we have a low risk reward setup on or around $290. Of,we break the all time high that would of course invalidate the corrective scenario.
vergun
@vergun, but since we convincingly broke the previous lows and the 2018 trendline in December, you may be correct.
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