Setup Looks Good So Far on $SPY

Setup looks good so far for a 1-2 of minuette (orange) degree; we’re at a good fib for the 2 here (there’s an extra nest on futures because of the additional trading hours—if this count looks a degree off to you). But, I want to use cash here because of something bulls will hope to see. We want to see a gap to help us confirm that we’re in a 3rd of 3rd wave, and in order to do that what we don’t want is a “wall into the close.” We don’t want to slam right into the high of day at the bell. Why? Because those are often reversed the following day and thus, we won’t get the gap (it’s not always true, so even if that happens, don’t fret too much). And so: it’s preferable for us to rally in “power hour” for the subminuette (red) 1 (ignore where I placed it in price, I have no idea where it might go), but the hope is to then pull back slightly into the close, which will give us the red 2. If we get that, odds are better that we get the runaway gap on Monday.

SPY


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