7) June 28, 2016 – Brexit Stock Market Crash potentially ended a Wave 2 in an Ending Diagonal Pattern
Hourly Chart After Brexit Stock Market Crash (C-wave of Wave 2)
The above is the hourly chart. Zooming into that last ending diagonal is the below chart:
Notice the 1981ES level gets tested 3 times — once at wave iii, then wave v — then again at the bottom of the b-wave — which happened after the market close.
And also notice that the wave i down at 2pm was the largest drop — in a zig zag formation. The remaining waves ii, iii, iv, and v – were smaller compared to this one.
The best time to buy would’ve been 6pm — after everyone has finished closing and the futures markets have been closed from 5pm-6pm.
What followed next was this:
and then this:
So the Ending Diagonal pattern followed by an A-B where B touches the lows once more — is an indication of the optimal buying spot.
Of course, if you’re late – you can also spot the A-B Mountain patterns above — and buy near the base of that pattern in the 2006-2008 region as an alternative (late) buy entry.