SPY: WAVE 3SPY is approaching the 0.786 fib retracement of wave 1. For wave 2, the standard is 0.618, but can go much higher. The condition of wave 2 is that it must not exceed wave 1. With today's run-up, we see volume exceptionally low. This should sound the alarm for traders and is showing me warning signs of a very large reversal. I am anticipating the largest drop in a single day that we have seen this year to come within the next few trading days. This drop will begin the start of wave 3 (the largest of the 5 waves) and many stocks that I follow are showing similar setups. All stocks that I have posted on this week are still within their range and I have not changed my thesis on them. META and AMD especially. Be patient for this setup. My target for the completion of Wave 3 is 464 (161.8% of wave 1).
PT1 494, PT2 483