Based on how the e-wave pattern is emerging, it's looking more like a high level consolidation rather than a topping process here. Here's some interesting Fibo relationships
The first leg wave A on ES (1272.50 - 1250.50) = 22 points.
Irregular Wave B (1250.50 - 1274.50) = 24 points.
Wave C (1274.50 - ??) = 22 points
?? = 1252.50, which would make wave A = wave C
The whole structure here looks more like a irregular flat which should end tommorow at 1252.50, which will also fill the last thursday's gap-up. Then a run to new highs around SPX 1285-90.
If 1250.5 gets taken out, then it could turn out be an expanded flat correction with a target of 1245. If we break below 1242.5 on ES, then something more bearish is in works and we might have seen an important intermediate top.
Anyway bottom piciking is always dangerous. So it's better to wait for a 30-min or a hourly buy signal and get aboard the train. If one were to bottom pick here, the safest instrument would be options and definetly not futures.
No comments:
Post a Comment