Tuesday, May 21, 2024

ES Morning Update January 7th 2020

Well the bulls did indeed rally the market back up yesterday and came close to hitting the FP on the SPY from last Friday. This morning the market is about flat though with no clear direction. As far as wave counts it's really hard to say for sure? We do look like we completed an ABC down of some degree, but was that all for the wave 4 or will it subdivide into a series of ABC moves? I just don't know. If it subdivides then the ABC down we just finished was part of a bigger A down. Then a bigger B up should be in play now and last into options expiration most likely.

Then the bigger C down happens, and that completes the wave 4 down leaving 5 up into April/May for a huge blow off top. If not, then the 4 down right now completed and the 5 up in play should take us into the mid-3300 range in the coming few weeks. Both counts suggest there's not much downside for the next couple of weeks, with one pointing to a strong rally and the other just chop with a slightly higher high. Without knowing which one is correct I don't have any high odds trade I'll willing to play. That's all I have for today. Good luck as always.

Author: Red

Related Articles


Latest Articles