c505218304b50c59c3659f6dda43bae7-links-0–>The market hit yet another new high just over 2070ES overnight — but we didn’t see anywhere near that during the day.
Instead, the market fell in what looks like a c-wave of a wave 2 drop.
S&P will need to move below 2150 and Russell below 1195 in order for bears to have any momentum.
Meanwhile, gold and silver may have bottomed overnight – with gold at 1310 and silver at 19.27 — lower than the prior low a few weeks ago. This could potentially form an A-B-C pattern in silver to complete a 4th wave. If that is the case, then wave 5 of 3 in silver should be beginning.
Today’s drop in the S&P is th elargest we’ve had in a while. However, the speed of the drop doesn’t seem right for a longer term drop — hence I think it’s more likely a wave 2 drop rather than an A-wave or wave 1 down.
Overnight it rallied over 19.5 — but then at the open, it dropped back towards 19.35 — From there it went straight up. And it was critical for Silver to go past the 19.65 and not struggle there — otherwise there would be a greater probability that Silver would retest the lows – and break below 19.00.
Luckily, Silver blew past 19.65 and held the gains through the rest of the day.
The above green A and B could also be considered 1 and 2 — best entry would’ve been at the open today for silver.
Here’s a crazily zoomed in 1 min chart of Silver last night.
The market almost never closes on the exact bottom — usually it’s the 3 of 5 — which is what happened here.
I thought the bottom happened just before 8pm EST @ 19.31 — but turns out it did another weird pattern down a little bit more towards 19.27.
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