In the chat today, I suggested a count for cash $SPY that involved a potential larger diagonal. However, futures presents us with less of a difficulty for the time being. It presents us with a much cleaner 5-wave decline from the 3/29 high and has had a retracement today that does two things helpful for the bears:
- The move “looks” corrective, in that is has what I believe is a strange triangle in the middle (that’s the minuette [orange] b), and
- It came precisely to the 61.8% retracement at the very tippy top high today to the tick
So, it’s an ideal setup for a resumption of the move down. I had been hoping for a bit more selling before this retracement, but it’s fine to get it out of the way here, too.
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