Friday, April 19, 2024

ES Morning Update April 4th 2018

Yesterday I was thinking that the move up off Monday's low is some kind of smaller wave 4, and in the chatroom I discussed it looking as though it was sub-dividing into an ABC pattern... which I think completed into the close yesterday. Now we should be in the 5th wave down and it should be the last wave before a strong rally up take's control and runs us into this summer with a new all time high expected. This 5th wave down could be just one wave or it might subdivide into 5 tiny waves, there's no way to know for sure. If it's one wave then it might truncate short of breaking Monday's low, but if it breaks into 5 tiny waves then it should take out that low and look to retest the February 5th low of 2532. We certainly need a flush out here as the bulls keep buying the dips with no fear, and before we can start a strong rally up we need them to capitulate. So maybe we breakdown today and take out all the stops that the bulls have just under 2532 and then reverse hard back up? It's a tough call here but I'm excited about getting this correction over with and a rally up to 3000+ started as it's much easier to be long then short. Yeah, I'm still a bear at heart but it's hard too short successfully as the market is so biased to the upside. Anyway, that's all I have for today... good luck.

Author: Red

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