It’s President’s weekend -and it looks like the markets are consolidating near highs. Here are just a few quick charts to check in on the market.
While it’s technically possible for us to have completed 5 waves – given the consolidation above 2350ES, there is the potential for this to continue extending upwards.
Extensions are possible – but I do have to note that we have what may be 3 series of 4th waves — once at 2320, then at 2331, then again at 2336 as 4th wave supports. These will serve as regions of support for later when the market eventually comes back down to this region.
The Russell had the i-ii setup in place mid week – but reversed last week – forming an A-B Mountain consolidation pattern with the 1385-1388 region as support. I believe pressure should eventualy resolve this to the upside given the pattern that formed over the weekend.
Last time, we showed the below chart – my expectation was for this to pullback to the 2342 ES region and then move up towards 2360.
It turns out it wasn’t as straightofrward as that – as the market pulled back further than I expected in an A-B-C fashion — so there should be one more rally leg – and then eventually we should fall back down to test these 4th wave support regions.
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