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.
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.