In this last week of trading in 2022 it appears many traders are finding coal in their stockings as the Santa Rally phenomenon is not materializing. Ideally I would like to see a rally into b of B target box above 3917. However, it is possible this b wave is not structuring itself ideally and may be a triangle as outlined below.
If this is the case, then we will continue to bounce around here while consolidating...only to push lower next week in our c of B into the 3761-3647 area. If this is the case, we should finish off B and embark on a rally to the 4300 area.
This will be an epic rally that has much meat on the bone for traders. I am expecting this rally to have markets up 20% from now before we top sometime early 2023.
Trade Alert: For those who sell premium (like me), I'm eyeing short puts upon the conclusion of our larger B wave bottom.
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