Incredible, markets are up 6 green candles in a row. Our comment from the previous weekend on 5/21 when there were 2 daily green candles was prescient:
If there is to be a bear move, it will have to happen in the next 24 hours. If that does not happen, we are currently on track for multiple green candles in a row with the potential of bringing us to new all time highs by the end of next week into Memorial weekend. That would mean we are already on our way towards 2500 ES.
So we were looking for the possibility of new highs heading into the Memorial Day Weekend – and we got that and more.
At the time, there were 2 green candles after a big drop – lots of people wanted to short the market. We tried as well for one night and had to take the loss – but quickly realized what pattern was actually playing out – the basic Elliott pattern. Still it’s not easy to find the right buy entry as there were absolutely no pullbacks to wait for.
Waiting for a pullback would mean you never got in.
After 6 green candles, there’s gotta be a pullback, right?
Here’s my best guess as to when and how much.
But before we get there, here’s a recap of the late buy entry on Monday after realizing that the market would not be pulling back as I would have liked.
We entered around 2388 ES, exited half at 2400 ES, and the other half at 2410 ES. Of course, the market ended up going higher all the way to 2418 ES briefly near the close today.
Zooming in, I see a 5 wave ending diagonal in 5th wave position for S&P. Overnight, we should consolidate and perhaps in the early morning get towards 2403 ES.
Best guess on the Russell.
Dow seems to be reaching resistance in the 21090 region. If there is a pullback, something just below 21020 or below 21000 should be all we get.
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