Ok, we have some inflation data coming in the morning, and that can be a market mover. The rubber band is very stretched right here. If data disappoints, the rubber band can break and I think the move to 3400 is possible. If data pleases, I think we can expect a real ripper. I am open to both. Given what I saw today (such as the $VIX H&S, etc.), I favor the bullish view, and I have tried to tilt my positioning so that that outcome will be more profitable. But I should survive either outcome (lol watch us pin).
If we fail, I will just be basically looking for a more or less straight line to 3400. If we rip, I think the major low is probably in. If we get any traction to the upside at all, I doubt we’re going to stop. Sentiment is suicidal here and we shouldn’t be coming back to this for a long time. And if that’s right, here is what I would expect over the coming weeks/months.
If we take out this high (green arrow) and break these parallel rails to the upside:
Then I think we’re going to do this, and form an inverse:
Which may carry us back to the August high:
And after consolidating (for pink B), we very well may rip close to all-time highs like this:
This will clear up sentiment, clear up the messy structure, and all sorts of things. And if I’m right that this is all part of an even larger 3-wave structure, we still may see a yellow “c” next year. And the yellow “c” will probably take out these lows we’re at now, maybe even get us to that 3400. But sort of in a straight line, COVID crash-like. There is a precedent for a structure like this from the 1960s. Could be hella fun. Let’s see what we do tomorrow.