c505218304b50c59c3659f6dda43bae7-links-0–>Well, I was looking for an extension to the upside, but instead we got an overnight reversal that extended beyond where I expected during the day. 2162ES was my expectation to hold, but instead — with the aid of the AAPL intraday selling between 1:30pm and 2pm — we got pushed quickly from 2162ES 2156ES. We were able to adjust our trade to avoid this portion of the drop, but that only is effective if the market reverses.
After 2pm, we had what might be an A-B mountain – that continued after the market close. My best guess based on the SPY chart is that it didn’t bottom until 6:05pm EST, but it did follow the structure outlined in the 5min chart below
Here was my initial prediction earlier in the day – that was not correct as we extended further below beyond 2162. However, the structure is still within the structure of a corrective wave 4 into the prior gap in the 2154/2155 region.
The corrective portion down to 2162 was expected. However, the extension further was not expected.
The pink portion is what I expected during the day – whereas the blue portion is what I did not expect. Hence, it required some maneuvering that I did not expect.
This is the post-market close action in SPY, microcounting the B-wave portion of a potential A-B Mountain.
At the close, we may have gotten just wave 1 down with the remaining portion of the B-wave down happening in the after hours. With options trading, since the market closes at 4:15, there is no opportunity to enter in the after-market session.
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