We bounced off the .38% perfectly for the completion of a mini 4 which coincided with a retest of one of the channel trend lines. Looks like next stop is 4004-4034 for a small wave 3. It'll look like a rejection off of those numbers when we reverse down for another wave 4 which could retest the same channel trend line we bounced from today. After that we'll start to see some crazy action both directions. Our 5 will look like it's blowing through the 4000 range and could possibly break out of this channel we've been in since November. After 5 completes, this could be a good profit taking spot or time to buy a hedge via uvxy/vxx calls.
Our 2 down could make this move look like a failed breakout from the channel depending on if it's a standard 2 or a shallow 2. If it's a 23% 2 (which we've commonly seen this year), it'll simply retest the channel and resume up. If it's a deep 2, people will think we're crashing again but we won't be. This will be an excellent buying opportunity again for a wild 3/4/5.
Banks & energy are incredibly strong right now and I think this is why we're headed up instead of into a deeper correction. The time WILL come. It just doesn't seem like it's now. Until then, we continue to defy gravity. Happy safe trading, not investment advice, just my 2 cents.
Our 2 down could make this move look like a failed breakout from the channel depending on if it's a standard 2 or a shallow 2. If it's a 23% 2 (which we've commonly seen this year), it'll simply retest the channel and resume up. If it's a deep 2, people will think we're crashing again but we won't be. This will be an excellent buying opportunity again for a wild 3/4/5.
Banks & energy are incredibly strong right now and I think this is why we're headed up instead of into a deeper correction. The time WILL come. It just doesn't seem like it's now. Until then, we continue to defy gravity. Happy safe trading, not investment advice, just my 2 cents.
5 sits at 4040 without any extension.