Yesterday at the close we had the c-wave of wave to rally. Then by the night session thing ms reversed and wave 3 began.
But wave 3 was not able to break 2050– so it decided to do a wave 4 really high and then backing off – indicating that this is likely forming a diagonal. Tomorrow is likely to finish a wave 5 to complete this leading diagonal.
Then an a-b-c wave 2 and then perhaps a big wave 3 down after that. But we take it day by day and see how the market reacts.
So far our position is doing quite well as we bet that the SPY would stay below 210 and at today’s close it was well below 207. We may close for profits tomorrow one day earlier than expiration if we are close to 90% of profits.