We May Have Entered a Meat Grinder

As many of you know, my expectation is for this rally to fail. The general intermediate term projection looks roughly like this:

ES

It is my expectation for us to eventually move lower, possibly to the the 3800 area at some point (and perhaps even lower, though I’m not calling for that at the moment). Off of yesterday’s high, we do have a reasonable impulse wave, and so if we do fall, we may do so at any time. However, it is also possible that we distribute well into next week as well. If that’s the case, we may grind along this channel forming a bearish wedge or some other structure, making one, or perhaps even two additional highs, perhaps like this:

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In other words, intermediate (orange) “C” could be in, or it might still be ahead of us a ways still.

There’s no way for me to predict whether this will happen or not, but if we just don’t seem to gain any traction to the downside for days, then this will be my explanation for that.


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