Up and then down, or straight down? Either way we're going down!
Updated
With the news of SVB about to collapse, the markets started to move into safe havens and the stock markets started moving down. Now the question is, has the move down we've witnessed been the X wave of a larger B wave which should terminate around 4300 (as illustrated in our green count). Or is this the minor wave 1 of intermediate wave 3 which should result in a very sharp move down. Either way we're convinced that over the next few months we're heading lower to 3200 as a minimum. But of course the important part we need to establish now is if we move higher for a minor wave 2 or up for the Y wave of the primary wave B. We're expecting the move down to terminate around 3800 before moving up, of course we will be closely watching this move up to see if we get 3 waves or 5 waves to confirm which count we are in. Exciting times are ahead with some big opportunites to make profits.
Note
With last weeks price action the green count is still looking more likely of the two as the move down has been in 3 waves from what would have been wave 2 of 2. However we're short with a SL at entry (4050) just in case this is the beginning of wave 3 of 3. This weeks price action should determine which count we are in and with PCE reports on Friday we might get a big move in either direction that would confirm the count that we are in.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.