★ Projected ABC correction coming for Wave 4 (MACD, RSI weakness supports)
☆ Potentially a prime spot to long @ Wave 4 completion for a follow through to Wave 5 $175+
★ This would also form a bullish inverse head and shoulders pattern
Potential Diamond Top
Invalidated with a close above 284
Great risk/reward area here
Diamond tops are infrequent but are like the Head and Shoulders pattern little brother
The peaks are higher on the left & the troughs are lower on the right.
You can see that in the RSI negative divergence too
Then the trendlines form together in a shape of a diamond💎
After a breakaway gap, $SPY accelerated +45 points before pulling back -20.
If this trend continues, we have a measured move to 288 before its pullback to 268-ish.
Give or take a few points but a market pullback seems imminent based on these measures.
- As markets ranges increase, you must look at a larger timeframe for a clearer picture
- For the past 10+ years, this green zone has been the ultimate buy zone
- The 200EMA has also been an area of interest for accumulation (not a support level but area of interest)
Potential Scenario. This past week was such an aggressive and decisive move, which created a lot of damage technically in the medium term.
What I'm looking at/for ▼▼▼
🔹Short term bounce to the 50% + backtest
🔸Revisits $253 level, which is Feb 18' lows and 168% fib