The market is setting up for a fast drop to end this multi-month correction. It should happen next Monday to Wednesday, and still can (and should) reach the 200 day SMA on the daily chart as that's where the multi-FP's are around on the SPY, which is roughly the 640 zone. On the chart it should be a C wave down and once the FP's are hit the market should rip non-stop into mid-April. I know the rally yesterday makes it look like the bottom is in, but the cycles say we have one more pullback coming into early-mid next week. I guess it could be a higher low, but I seriously doubt it as it should be a C wave down and it's "needed" to get everyone super bearish so they can be used as fuel for the big squeeze that will follow afterwards. Here's the short term wave count below...
As you can see it's looks very much like a wave 3 of C is coming next, and that "next" could start this Friday, but the worst of it should be next Monday-Wednesday. If you are looking for a chance to make a bunch of fast money I do think we'll get that chance into a flush out low early next week, and then even more money on the way back up into mid-April. No long post here as while it's dragging it's feet it's "overall" doing as I expected for the bigger picture.
Have a great weekend.
