I noted in the last S&P post, that my primary expectation is that we go towards 1885, then go below 1800. Alternatively, if we can go to 1850 and then 1950.
Today we got that wave 2 to 1885 — an ideal short area. From there we got 5 waves down, but the funky thing is that wave 1 is the longest of each of those waves. Wave 3 is shorter than wave 1 and wave 5 is shorter than wave 3. Then we got a massive, unexpected wave ii (potentially up) —-but the shape of it doesn’t look quite right.
I was open to the possibility of a rally up to 1940 — but in that scenario, 1845 should have held. But the thing is 1845 did not hold – and we went towards 1820 –but then this big rally to 1853 is a bit confusing to me. I would imagine it shoudl turn down, but the speed and size of this rally makes me cautious about the possibility of a big rally even though 1845 did not hold. Will need to see how things look in the morning tomorrow.