The pop into the close looked like (v) of 1 to me, because it was too long to be a subwave of 3. I guess we will see tomorrow; maybe it will morph into something else.
Better still would be some squabble in the morning over socialism or growth or whatever other distraction, that would give us a 50% retrace for a W2, to the 1669 area. Not only is this the 50% retrace, and the logical target for support for an inverse head & shoulders, but it is also where the old lower trendline for the original ending-diagonal, the one drawn up from 1560, passes through. So it should offer excellent support.
A halfway-back move tomorrow could be an excellent spec play with front-month options, if a real budget deal is hammered out over the weekend. Yeah, I think we can pop all the way up into the 1740s out of that one.
If the W3 actually completes into October opex, then waves 4 and 5 will need to find a way burn off time and excitement by moving sideways, maybe even with another E-D for the 5th wave. October 31 still makes an excellent top, coming after a Fed meeting, when the new POMO schedule and amounts are announced.
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2 comments:
Hmm, an index short in the 1740/50s would certainly be more appealing than where currently are.
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Agreed. This is pretty wild. If a Halloween top is in store, we now have a lot of time to kill.
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