Two scenarios possible here:
Bull Scenario: As depicted we are turning down for a wave 4 before the finishing rally for the primary wave 3. If this is the case then we could see bottom between 447-450 and this is a BTD situation
Bear Scenario: We just had an ending diag (shown with white trendlines) and we already just had our wave 3 top. From here we are going down to test at a MINIMUM spy 435.
Positive signs: To me it appears more like a wave 4 because in the bear scenario wave 3 is very short, which isn't common, and then minor wave 5 isn't extended either. Technically I do think it is valid, but not ideal in wave theory. Other positive is that some stocks appear oversold: BA & CHWY being two that I think bounce from these levels
Negative signs: bearish divergence and ultimately rejection on RSI. MACD curling negative.
Ultimately time will tell which will unfold, but either direction you like you need to be careful up here because if the top isn't in, it sure is close.
Bull Scenario: As depicted we are turning down for a wave 4 before the finishing rally for the primary wave 3. If this is the case then we could see bottom between 447-450 and this is a BTD situation
Bear Scenario: We just had an ending diag (shown with white trendlines) and we already just had our wave 3 top. From here we are going down to test at a MINIMUM spy 435.
Positive signs: To me it appears more like a wave 4 because in the bear scenario wave 3 is very short, which isn't common, and then minor wave 5 isn't extended either. Technically I do think it is valid, but not ideal in wave theory. Other positive is that some stocks appear oversold: BA & CHWY being two that I think bounce from these levels
Negative signs: bearish divergence and ultimately rejection on RSI. MACD curling negative.
Ultimately time will tell which will unfold, but either direction you like you need to be careful up here because if the top isn't in, it sure is close.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.