I still don’t know if a major top is in yet, or if this is all just corrective. I can still see it going either of two ways.
The bullish view is that this is a two. There is some bullish divergence on the hourly and it’s come to the 78.6% retracement, the second-most common depth for a two. If this is correct, we should rally hard, eventually heading to 5,000 or even more (the orange box above) for the 3rd wave.
The bearish view is that this is a one to the downside. On this count, we may see a relief rally that should fail around the orange box noted.
In the cash session, there is a bear flag forming that will either lead to another breakdown, or, the bulls will need to invalidate this by sending us up out of the parallel rails.
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Doesn’t sentiment analysis make it seem like there is too much bearishness that needs to be shaken out? All I see are bears everywhere right now on Twitter and with my friend group. These are retail investors.
It does feel like that, doesn’t it? I’m seeing the same thing.