If you saw my prior education post of why I trade post earnings, this is another perfect example. Leading right into earnings price was right between supply and demand zones. Earnings release rocketed the price right into supply and, not surprisingly, sold right off back down into a demand zone where we currently sit.
My overall thought is leaning bearish here. Per my counts, the earnings release should have completed 5 waves up for C. Corrections can be tricky, but I think we can very possibly at least get a push up to 820 - 835 area. This will be an important one to watch as if it gets rejected there, I’ll lean to thinking it will be a wave (b) in this correction where I will look to enter a potential short position. My invalidation if I enter a short there will be a break above 886.
Bigger picture, possible we are starting a 5 wave count down for an overall larger correction. My invalidation for this overall larger correction would be a break above all time high. Will have to wait and see but short term my next thing to watch is potential small short if we get price to retrace back to 830 area.
My overall thought is leaning bearish here. Per my counts, the earnings release should have completed 5 waves up for C. Corrections can be tricky, but I think we can very possibly at least get a push up to 820 - 835 area. This will be an important one to watch as if it gets rejected there, I’ll lean to thinking it will be a wave (b) in this correction where I will look to enter a potential short position. My invalidation if I enter a short there will be a break above 886.
Bigger picture, possible we are starting a 5 wave count down for an overall larger correction. My invalidation for this overall larger correction would be a break above all time high. Will have to wait and see but short term my next thing to watch is potential small short if we get price to retrace back to 830 area.