SPX: WXYXZ RECOVERY PATH?
Updated
Chart says all. This recovery in bear market will be longer and more volatile by far than the 2018 minicrash V-recovery.
Historically, most bears follow a WXYXZ path, with second X weaker than first, a lower high. The Z leg might be at or slightly above the 23 March low; a 5th wave extension could push it down to 1.272 x wave 1, to carry index around 1770. The current 'Y' wave should give a higher low in the target box zone, before pushing back up to join channel top.
IMO buying on double bottom later in 2020 will be an historic opportunity...
This is just an idea, does not constitute investment advice; trade at your own risk, GLTA!
Historically, most bears follow a WXYXZ path, with second X weaker than first, a lower high. The Z leg might be at or slightly above the 23 March low; a 5th wave extension could push it down to 1.272 x wave 1, to carry index around 1770. The current 'Y' wave should give a higher low in the target box zone, before pushing back up to join channel top.
IMO buying on double bottom later in 2020 will be an historic opportunity...
This is just an idea, does not constitute investment advice; trade at your own risk, GLTA!
Note
Frantic bullishness on 5/18 may be a blowoff MOMO FOMO move, not chasing this but it is one helluva short squeeze, what a massive gap! Doubtful whether this is a runaway gap coming near the top of a long rally; need to see the price action Tuesday to get confirmed, it smacks of a triple top IMO. Be cautious!!All gaps eventually fill....
Note
Revisit this idea in latest post on Island Reversal in SPX. WXYXZ pattern is the most typical recovery, the Bear Rally went longer and higher than imagined; selloff imminent IMO
Trade active
See latest idea for current updates pls. Trading just under the Fibo again. Watch for 2PM short squeeze when retail brokers force liquidations; watch for EOD squeeze with short covering and "Buy on Close" orders. Look to add to shorts at these junctures.
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