Today we sold off pretty much right from the open. Overnight, there was a completion of 5 waves down – but the bounce from there could not hold at the market and from there went down for most of the day, though there was a strong rally in the last hour and a half.
Even though we broke out of the barrier/parallel triangle, it’s also possible that the bottom is in. It’s happened before when critical support broke intraday — only to completely reverse and break out to the upside in the next two days. We have very clear 5 waves down – and we covered half of our short via spy puts at the right time near the lows of the day.
Even though we captured a portion of the short today – I can’t be confident that this will get towards 2100ES or lower in the immediate term.
Last time’s prediction was wrong – as we gapped up over the weekend and rallied towards 2163 — higher than where it failed last Friday.
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