In this post, I pointed out an inverse that had formed on $TSLA, but it has morphed into something else. I believe we will still go up in price, but not as high as predicted in that post. So, that call is killed, and I have a new one. Also, I expressed the difficulty I have been having with its structure and count, but I now believe I have solved those difficulties.
A summary of some of the issues at hand:
The grinding nature of the move up from May almost certainly means it is still in a correction, not any kind of new impulsive move.
That triangle I’ve stuck an arrow on is a huge clue. They only occur in “B” and “4th” waves. And there’s no way to make that a 4, even by force, so we can conclude that it’s a B.
If it’s a B, then what follows is a C and should be a 5-wave pattern, and that looks good. And I think we’re in the 4th wave triangle of that. The inverse I had pointed out before turned into that instead and it’s a big clue for me.
So, I also believe that cycle wave 3 was the top of the market, and a big sideways slopfest since then is what we would expect for a 4 of this magnitude, so that’s good.
We would expect a 4 of this degree to end, ideally, at the lower end of the orange box. We can draw a barely ascending triangle around all of the price action, and that’s what I think we’re in. So, the next moves on this analysis: a drop to minute (blue) e, then a rally to pink D, then a 3-wave drop into the target range for big pink E, then it’s going to surpass the prior high in five big waves over a very long period of time, a bull run of probably a year or more. And I will post a zoomed in view below this chart as well.
$WISH is complete horse shit of a company but the wedge cannot be ignored. Very excellent divergence at the lows here. It will need to break out, backtest, then go: target is the orange box. On all of these wedges, some will move faster than others, and I have no idea which ones. Some will leap out, others will step out, dribble sideways, then go.
Despite the bear flaggy look, $T is coming out of deeply oversold territory and has trend line support. We may expect at least a countertrend bounce to the target area, if not a completion of the sideways correction.
So long as we don’t break down further, as i expect we will not, this bullish consolidation on $DIA points to significantly higher prices. I have noted the measured move in the orange target box above.
The longer the correction, the bigger the pop when it ends and like the bullish structure on $QQQ noted here, $IWM has an equally powerful structure forming, a big inverse head and shoulders pattern. I have noted the target as it exceeds my prior target.
This wedge on $QQQ looks fantastic. I’m a little embarrassed because it’s taken longer to get going than I had first anticipated, but this should break up with vigor. I don’t know if it needs to ping off the top and then the bottom again to fill out, but this is more likely to break up hard than down. It almost certainly targets new all-time highs.
$SKLZ should, at a minimum, soon get a strong 30% technical bounce from its current levels. At a minimum, I expect a rally to the orange box. It may also be ending the entire decline from February onwards, but I will remain conservative here and only aim for the initial move for the moment.