Already seeing headlines boasting BIGGEST BLACK FRIDAY EVAR!!! Looking like a setup for a good short, especially as a hedge if you're long the overbought scam that is the SPX right now.
Thxgiving week (light blue intervals) has marked a local top or a continuation of a downtrend in 4 out of the past 6 years. The purple indicator is correlation w/ put volume on the SPX. Would like to see a spike here as well as a third touch of that top TL to complete the diagonal wave. Green line is relative performance to SPX which is high and tight right now.
Wave count wise I've labeled it as the end of wave (iv) flat but it could be a leading diagonal as well in various other counts... not too worried about that, what's important is that this looks clearly like a diagonal (either leading or ending) that will likely retrace back to 41 by March.
I've drawn a harmonic which looks like a developing 5-0 pattern (.500 retrace has already rejected it once) which would mean a deeper retrace below 38 to make lower lows. A daily close above that schiff channel would invalidate any immediate reversal.
Thxgiving week (light blue intervals) has marked a local top or a continuation of a downtrend in 4 out of the past 6 years. The purple indicator is correlation w/ put volume on the SPX. Would like to see a spike here as well as a third touch of that top TL to complete the diagonal wave. Green line is relative performance to SPX which is high and tight right now.
Wave count wise I've labeled it as the end of wave (iv) flat but it could be a leading diagonal as well in various other counts... not too worried about that, what's important is that this looks clearly like a diagonal (either leading or ending) that will likely retrace back to 41 by March.
I've drawn a harmonic which looks like a developing 5-0 pattern (.500 retrace has already rejected it once) which would mean a deeper retrace below 38 to make lower lows. A daily close above that schiff channel would invalidate any immediate reversal.