The lack of follow-through today after the opening gap down suggested that we were completing a five-wave move on one of those opening dumps that marks the end of a move. Forget
the irregular flat, that was an interesting idea, but I think the zig-zag 4th wave here is the right call after all.
That would put us in b of 4, pulling back early Monday, and then rallying again into the release of the FOMC notes late Tuesday. I propose that those FOMC minutes, plus the lack of POMO on Wednesday, will send us lower late in the week to SPX 1527 and the bottom edge of the channel.
I had a bid yesterday in the AH for some 1-day mayfly SPY puts. It missed by .01 and I just ran out of time in the 15-minute AH options session. If I had nabbed those, however, I hope I would have had the sense to cover them at the open this morning. The melt-up on days like this is just so evil. Never mind anyone who tried to short the hole on that opening. UVXY seemed like the tell on this today, up by only a moderate amount, and then withering on the vine.
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| SPX 04-05 |
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| 30D |
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4 comments:
Er, actually, the B-wave drop Monday should be to SPX 1545 for a little zig-zag there, too.
What does yesterday afternoon and today foretell? This is crazy bullish optimism.
Yeesh. Certainly no zig-zag, huh?
I was trying to give the market some leeway in letting it pullback, then advance to a finish.
Now we're up near the upper Jaws of Death trendline. 1584 as I type this.
FWIW, it's a New Moon tonight!
LOL
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