Just a possibility for a huge setup happening. Comments and guidance please.
Comment
⋅
Last minute advice is I would like to see the daily RSI hit the top of the Divergence line while posting a higher high and then getting smashed back. This would make the entire short more valid and solid.
Why did You make that 5th wave so elongated? I mean it would look better if the 5th was already completed at 1k, so we would already be in the correction, the wave A, the first leg down now.
drjasonho
⋅
@janfoux, True. Was wondering whether the S&P would make a last final blowoff top then. I used a fib relationship of a 1 to 1 extension of the 2nd and 3rd wave to predict the range for a top and there was some confluence around the 1100 area. In retrospect, the TDseq showed a 9 on the 4 hourly and the weekly, which normally represent some toppish action although a last gasp bull trap always happens. I guess I was too conservative because we hit the 0.786 fib pull for the 5th wave before the pull back. This could be an A wave although I dont try to chase the price due to stupid mistakes from past experience. I'll stick to the game plan now and even if the price falls back now, I'll wait till the B wave correction to see if the 0.707 of the dead cat bounce holds. I'll then put a stop limit sell at the edge of the A wave, and take a lesser but safer profit. Cheers and thank you for the advice.
janfoux
⋅
@drjasonho, SPX final blow off top? That just happened at the 10th of June. Perfect island formed above the 3200 level for 5 days, then opened with a -2% gap down, almost the same way as it was at the 24th of February. Check it out, compare them. But as I recon this, I'm sure it's not gonna happen, as you know the outcome is always the opposite than what we think it should be. :)