While the ES has now rolled to the March contract I'm going to continue referring to the December contract for right now. Just add 70+ points to get the targets for it. Ok, so Monday we had a nice rally up as expected and if all goes well we will continue higher into a blow off top this Wednesday (most likely). Here's a chart below of what I think is possible...
As you can see this final move up can happen this week. It will then produce a pullback into Christmas that will be the early part of the expected drop to the 533.01 FP on the SPY. It will unfold in an ABC of course and the A and C waves will have 5 waves inside them. What I think we will see is the wave 1 down and 2 up (the Santa Rally) inside the A wave down.
Then January will have some nice swings in it as the wave 3, 4, and 5 of the A wave down plays out, then the B wave squeeze (probably in front of the inauguration on the 20th) and the C down afterwards and into early February. It could play out much faster of course but that's what I see right now.
Have a blessed day.
