Overnight ES futures are signaling an SPX open right at the lows. As I have written about for weeks...I was calling for an ABC flat to complete wave 4. I am still expecting that to play out but I'll know this morning when the SPX opens if that is going to be reasonable.
The issue I have with that pattern now is this decline should be a 3 wave pattern that overlaps (a B Wave). This recent decline looks impulsive and the observer could reasonably conclude that this decline will continue. A continuation would've been my black count that I removed from the chart a couple days ago. This is the primary reason why no one should ever try to trade a wave 4. It's difficult to analyze let alone try to make money in it.
Suffice to say if we take out 3850-SPX then we may be headed another 100 points lower rather quickly.
Let's see what clues we get today.
Best to All,
Chris
The issue I have with that pattern now is this decline should be a 3 wave pattern that overlaps (a B Wave). This recent decline looks impulsive and the observer could reasonably conclude that this decline will continue. A continuation would've been my black count that I removed from the chart a couple days ago. This is the primary reason why no one should ever try to trade a wave 4. It's difficult to analyze let alone try to make money in it.
Suffice to say if we take out 3850-SPX then we may be headed another 100 points lower rather quickly.
Let's see what clues we get today.
Best to All,
Chris
Go to ewtdaily.com for DETAILED DAILY UPDATES on this ticker, and get a 7-day FREE trial on updates on 27 unique tickers.