Tuesday, July 23, 2024

ES Morning Update February 2nd 2019

Futures are as flat as a pancake this morning with little clues as to the direction today. So I'll have to just remain without an opinion this premarket morning and give the market some time throughout the day to give me some clues to where it wants to go. What would I like you happen you ask? Well, I'd prefer the bulls run it up again to the 2720-2730 zone to finish up a third wave (or C?) so I could short it for any expect move down of 80-100 SPX points. It could be more if it's a C wave up from the 12/26 low, which would complete the entire ABC up rally... aka, a large B wave. But most likely this rally will last well into the spring/summer and keep dividing into smaller waves.

So I'm thinking we are a wave 3 up since 1/3/19 (where it started) and inside that wave 3 it is likely breaking into 5 smaller waves. I think we are in the 3rd wave up inside that wave 3, so this 80-100 point drop will likely just be a wave 4 down inside 3 up, which should be followed by a wave 5 up inside a 3 up... and that wave will likely extend into early March before it tops out.

Where is anyone's guess so I won't speculate on that until we get to it. Right now let's just focus on trying to catch this short and exit at the right area. On another note, if anyone is having trouble getting into signed up for the chatroom just email me directly and I'll manually set you up. Red (at) RedDragonLeo (dot) com.

Author: Red

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