So contrary to what I expected, the market dropped overnight and dropped straight from the open down towards 2165 ES by noon.
The ending diagonal I was expecting, did not play out. However, does that necessarily mean market will crash?
At the moment, I see enough waves to consider this drop a wave ii — assuming the high at 2190 was top of wave i.
There’s a possibility we face resistance at 2185 and turn down towards 2154 to complete all of wave ii. Or it’s possible that all of wave ii already completed, in which case the market is even more bullish than I anticipated. If so, then we’re not getting the 5th wave up, instead it’s an extension
That’s the thing, I wanted a clean 5th wave up – so it would be clearer to set up a short down towards 2140. But instead of getting the 5th wave up, we dropped towards 2165 in what appears to be a wave ii or ‘a of ii’ — then the chances of seeing 2140 are greatly diminished.
Basically, what I’m saying is that the fact that we dropped today – by quite a bit in the morning–all the way to 2165 and then reversed –makes the pattern more bullish than if we were to top out in a 5th wave up that would have set up a large-sized short.
Meanwhile, silver has been really confusing. I do not have any clarity in the pattern.
18.9 is still a potentially concluding area for a massive wave IV in silver — here’s the only pattern I can think of that would get us there. I’m not confident of this pattern, but then again, I also don’t have a clear pattern to the upside — so right it’s in no-man’s land as it did break the 19.6 region, though it did reverse but not convincingly.
This is yesterday’s gold chart – but today we ended at 1353 — basically the same spot. The fact that gold does not look as bearish – makes me question whether the above pink line for silver will play out – since usually gold and silver are somewhat correlated.
Sign up to become a member to access to premium videos and you get the insights you need to make more educated trade decisions. And yes, you’ll get join our Whatsapp mobile text alerts for weekly trade recommendations.
|Get Trade Alerts Now|