WOW! That was one crazy drop yesterday! I talked about a "fake out" move yesterday and I certainly wasn't expected one that big. I wanted a last move up for a higher high to short but was open for a move down instead, which is what we got. I did not short it as I just didn't know which way it was going to go.
But now that we've seen the big flush I think we are going to see a final rally start today (maybe Friday?) that will last until the end of the month (maybe sooner?) where this entire move down is erased and we put in a new higher high... but not the DOW, just on the SPX/ES (probably the Nasdaq too but I'm positive).
I'm looking for 6120-6140 on the SPX into the end of this year and that will be the final top before we fall off a cliff for real, and the first downside target will be the 533.01 FP I suspect, maybe lower? As for today, I'm looking for a double bottom test as it's pretty clear that yesterday was a wave 3 down inside a C wave of some degree.
We just need the wave 4 up (which started yesterday after the low) and the wave 5 down to finish it. Then it's up, up and away into the end of the year. I'm looking for a long today, and bummed that I missed the short but that's life.
Have a blessed day.
