Today we got a big rally all the way above 1975 ES, which as what we were anticipating for this week. This is very high – especially considering that last night, we hit a low of 1920.75ES.
Yesterday’s action into the close was a bit scary – we said in our post Monday, 2/29/16: Multi-part B-wave to 1926/7?, Will C-Wave Happen?: “If we don’t rally overnight, then there could be something wrong with the upside pattern. Would not be good for the upside if we stayed below 1930 all night into tomorrow.”
In yesterday’s post, I also said that: “I would say 1920 would be the line in the sand. ” — we hit 1920.75 and then began the rally towards 1975+ES.
Well, overnight, we hit a low of 1920.75 and by the open, we were around 1943. We dipped towards 1937 and that was an opportunity to go long if you weren’t already long. And from there, it just went straight up — just as a C-wave should.
So while yesterday we weren’t sure if the C-wave would pull off — in the end, it did pull off.
Here’s a closer look at the micro-count of how this developed overnioght:
We made a good amount on the way up. I do have to caution though that initiating any new long positions above 1950 should be done cautiously – as things could potentially turn around faster than you can get out — IF the bearish pattern plays out.
Our Trade of the Week is now pretty much at max profit. Last week, we initiated two bullish trades for this week, both of which are max profit well above $1,000 each — so that’s roughly $2,500 in profits for what we recommended.
For my own account, of course, I was a little bit more aggressive:
Yesterday we also noted that we should eventually get a test of 1050. Here’s what the chart looked like yesterday:
Here’s where we are today: