SPX-500
Updated
Here we have a very controversial Scott Carney Harmonic Pattern. What just about every trader out there can agree upon is the SPX needs a correction. equities are far too expensive right now and liquidity is almost dried up (if that's grammatically correct). Now based on what method each trader subscribes too is where the punches start coming in. S&R traders criticizing trend line traders, with tend line traders criticizing Fibonacci traders , with them criticizing supply and demand traders. with everyone hating on Harmonic Traders LOL. Lik ei have said previously Harmonics is nothing more than finding support and resistance using Fibonacci ratios, and its not sorcery despite popular belief. I myself am a harmonic trader and here we have a Deep Crab Pattern with it projecting roughly a 8.5% drop; however, what would be nice is a 10% drop. This drop would open up a lot of much needed liquidity in the market make equities cheaper and then the bulls can re-enter. What would be nicer would be a 27% drop, but that might trigger Stonks Armageddon and cause a more drastic sell off, but I believe this type of drop would provide the perfect base for a more stable climb in the future, however, that seems a bit improbable, so a 20% drop will do. The yellow lines are what I hope to see. Happy trading!
Note
the trade was active but i closed out as the swap fee from my broker was too expensive; however, the trade is still pushing down. this is much needed in the SPX as liquidity was pretty much dry evidenced by the slow moving PA and failure to create a higher high. I definetly foresee the PA touching the T1 but it needs to reach T2 to open up even more liquidity for the bargain shoppers to enter.
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