Monday, May 27, 2024

ES Morning Update January 29th 2020

Futures are up some this morning as the ABC move down certainly looks finished at this point. So, if the entire move down was again, some large A with 3 small waves inside it, then we are in the large B up now. I suspect it will make a new all time high again before finishing. Timeline for this move is probably next Monday or Tuesday as you know the Fed's are going to hold the market up the rest of this week like they always do during FOMC meeting weeks. Today though we should complete the smaller A up part of this larger B up.

If we drift back down more then about 10 points in front of the meeting I'd say that small A up ended, but since I suspect they will close today out positive I'm leaning toward the small A up ending at the close today. Either way a small B down should follow no later then tomorrow. And if I were SkyNet I'd keep it small to make sure the bears can't get out of their trapped shorts... especially if we hit 3300 today as you know the bears will short it.

After that small B down finishes I'd look for the small C up to take us into the close next Monday for that new all time high, or into the open Tuesday. That should finish the large B up and have every bull long with bears back to sleep again thinking they missed the move. And that's when I think the big drop will start and take us into mid-February with a nasty 200-300 point drop. Of course this is all just a "best guess" on what I think might happen based on what I currently see. Will it play out like that? Who knows? If so I'm going to ride it down. May God watch out over all of us sinners and bless us even when we don't deserve it. Amen.

Author: Red

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