SPY/ ES: Where are we and where are we headed?
Updated
Based on a Fibonacci projection of waves 1 & 2 coupled with bullish MFI divergence a reasonable assumption can be made we have already bottomed in a third wave (see horizontal white line that ends w/ an arrow) or are probably pretty close. Once the fourth wave up is complete we will have more knowledge to apply in terms of predicting where 5 will terminate but based on probabilities if 4 retraces 50% of 3 then the spot marked w/ 4 in my wave count represents the expected target and again, based on probabilities if 5 is equal to 1 in magnitude then a bottom may be in the region shown at the bottom right shaded bar (corresponds w/ 5). Please ask any questions you have.
Note
If SPY breaks 2853.25 this wave count is invalidated. Does that mean we are not headed back down? No just that we would be dealing with an ABC pattern as opposed to a 4 wave pattern.Note
5 wave pattern I meant to say
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