What I Would Like to See

What I would like to see and what I am going to see may not align, but this is what I would like to see. If this $%&*! minute (blue) 4 is finally done, we should exit the range to the upside in a 5-wave pattern (the little red count you see on the chart).

If that happens, I think several things of great importance will occur up there.

  1. Many bulls (who also interpret this as a 4) will see that as the 5 (as opposed to my orange 1 of that 5—as I expect an extended 5th). Many will expect a deeper retracement from that point.
  2. Every bear out there will also aim to short the big orange box because it’s the logical place to do so.

To my mind, this sets up a perfect storm: bulls won’t be long and bears will be short, en masse, and I think that’s a good spot for the exact opposite to happen: a move in a 3rd of 3rd to upside instead (after the orange 2 up there completes).

ES

That said, we’ve got to get out of this range. If we don’t, it’s possible that the blue 4 isn’t done yet and they’re just going to keep us here even longer. I hope they don’t because I’m bored, but it’s become a very large structure and it can get bigger.


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