Earlier in the week, it appeared that we were preparing for a Wave 3 down. After this sharp V shape recovery, I am changing my stance. Instead of a wave 1 and 2 completion, I'm seeing this as an ABC corrective wave. The movement from Aug. 5 until now is showing a completion of wave 3 of wave 1 of wave 5 complete. I'm expecting a retrace for wave 4 to the 0.382 fib retracement of 541 for completion of wave 4, then a final wave 5 of wave 1 to 560-561. Larger Wave 2 should bring the SPY down to 529-530 if wave 5 of wave 1 completes at 561.
Note
My friends who are more familiar with EW, state that we are about to go into wave 3 after this final pop up, so I'm staying vigilant. Either way, we are down this upcoming week with a 4th wave down and maybe the start of a 5th wave up. Note
Looking for a test of 546. If 546 holds, expect a gap fill at 564.Note
Looking like we are reaching my final target. Expect Wave 3 to end now at 460. Wave 4 down PT 539-544I will be moving future posts to my Patreon page patreon.com/FiboTrader1
Best of luck the rest of the week!
We are heading down within the next 3 trading days
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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.