Nice 3 wave rise so far to 1104 area as suggested in previous post. So what's next? Corrections are always complex affairs, making trades difficult. Here are some possibilities:
1) On the 60-min charts, SPX is very overbought. And coupled with the fact that 1104 is serious resistance, there is a possibility of some consolidation today - maybe a 3 wave down(as shown in green). After that, we may go higher to push the daily charts into overbought before any serious selling. Fibonacci resistance levels at 1110 and 1120. But i feel we need some kinda selling before we can get there.
2) We break higher today(making it a five wave move) to 1110 before consolidation, then a five wave move up to 1120.
3) We break down here below 1070 for new lows.
Scenario 1(shown in green) is my preferred view. Now lets sit back and watch the show!
Posts
0 comments:
Post a Comment