I Believe the S&P 500 Remains Within the 3rd of 3rd, and Beware of This Previously Unsuggested Possibility

In line with main counts, we continue to rally. I do not believe we have completed the 3rd subminuette (red) wave yet. I will use cash here ($SPY) as I have some competing ideas on how to count nests in the futures for the time being. I would still like to see a gap in the middle of this wave, and perhaps we will get that tonight.

Now, as for targets, the minimum is the orange box for minute (blue) 3, but it is free to go higher for that wave. I won’t be able to tell yet, until we see a period of “congestion” that will suggest the fours and fives (of the various threes) are presenting. This may happen around the down trend line breakout (which would occur around the orange box), but it may also happen at higher prices (I’ve noted two other common fibs where blue 3 can go on the chart).

Now, under normal conditions, minute (blue) 5 is expected to top out at any price above minute (blue) 3, perhaps even going as far as the length of minute (blue) 1 in price, but in this case, I think we have many ingredients for a gamma squeeze presented to us. The market is very severely shorted here, it seems, and sentiment is at multi-year lows. And so it is possible that we squeeze very hard for minute (blue) 5, perhaps making it the wave with the real extension in it.

SPY


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