ES Morning Update February 3rd 2020

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Well, so much for the large B wave up lasting into this week as Fridays drop was clearly a C wave of some degree. Since it's about the length of the large A down it might be complete or will finish up today or Tuesday. The impeachment trial is supposed to be over with this Wednesday, which might be a turn day in the market. The market is certainly close to a big squeeze but I'm not sure if there's more downside coming first or the low is in right now? Tough call?

And China is putting in $174 Billion into the market to keep it from crashing this week from the virus. Call it QE or REPO or whatever, the point is they don't want the market collapsing upon it's open this morning.  We can see the futures up some, but that's to be expected after such a large drop on Friday.  However, this injection of money from not only China, but the FED here too in America, and the ECB, it's going to be hard to be a bear this week.

I'm not saying for certain that the market is going to keep going north and that the correction is over with as I just don't know.  But this week should be off to a bullish start and should continue until everyone turns bullish and gives up shorting the bounce.  We do now have a clean ABC pattern down, and there's nothing saying for sure that we must have another larger ABC down after a bounce to say a top double or something?  I'm just going to focus on today and this week and it looks bullish.  When next week comes around we'll see if another big drop is still in play or not.

I don't have anything else to add so I'll end it here.  Have a bless day and always remember that God always there when we need him.  We just have to ask for his guidance.  I don't think he'll tell you where the stock market is going next, but who knows... he might?  If he does please share with other.  🙂

 

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