Scenario 1: ABC Zig Zag that doesn't turn into bearish impulse. The two previous candles seem as if the bulls tried to push up a bit on average volume. RSI is oversold. Could it make a lower high this week after the massive Friday sell off? This could be the start of an impulse wave to the upside with a minor pullback to what would be a 2 wave. My only doubt here is with the FED raising interest rates to lower inflation from the current 8.50% to the year end goal of 4%/3.75%. Other economic indicators doesn't show enough for me to think positively about this market.
Scenario 2: ABC Zig Zag turns bearish impulsive. Weekly RSI is overbought and is crossing down and looks like it wants to test the $361 lows. SPY rose a bit today on low to average volume so I don't really trust big moves to the upside. We have a decent amount of FED speakers this week and I'll be following the economic data. I doubt smart money will feel confident enough to push the market up short term. Regardless, this scenario is the scenario I see playing out in the coming days to weeks.
What do you think?
Scenario 2: ABC Zig Zag turns bearish impulsive. Weekly RSI is overbought and is crossing down and looks like it wants to test the $361 lows. SPY rose a bit today on low to average volume so I don't really trust big moves to the upside. We have a decent amount of FED speakers this week and I'll be following the economic data. I doubt smart money will feel confident enough to push the market up short term. Regardless, this scenario is the scenario I see playing out in the coming days to weeks.
What do you think?