*disclaimer: Not financial advice. This is my personal trade plan only. I am not qualified or licensed to advise anyone on their specific positions or trades, I am sharing my personal opinions only. Never make financial decisions based on any information on this site or any associated platforms. Always consult a professional for investment related advice and do your due diligence*
Overview:
- Today went just about as expected with indices continuing into the ‘sell zones’
- So far, we have 3 waves up. However, there has been no rejection yet. This 3 wave move could turn into a 5 wave impulse.
- As I write this newsletter, indices are at a major inflection point. A reversal here would send us lower into the end of the week — continuation likely confirms the bottom is in
- Looking at the indices alone, the bear count appears to be higher probability… although many individual names showed a lot of strength today. This leads me to suspect the bulls may take over from here
- Rather than guessing, I am preparing for either outcome. I expect the overnight session to provide clarity
- A rejection from this zone targets 4435
- Continuation through this zone (above 4680) would essentially confirm the bottom is in place
Setups:
- Setup: Nested 1,2s
- Confluence: Index alignment
- Trigger: 2H reversal from fib zone
- Confluence: Indices must take bullish route. Move into zone must be corrective
- Setup: A,B-1,2 (or 1,2-1,2)
- Confluence: Divergence on wC low
- Trigger: 1H Reversal from fib zone
- Conditions: Move into zone must be corrective. Indices must be bullish
- Notes: Wave 1 may extend further, fib levels will be adjusted accordingly
- Setup: 4-1,2-1,2
- Confluence: Strong algo
- Trigger: 2H reversal from fib zone
- Conditions: Indices must be bullish, Move into zone must be corrective
- Notes: Wave 1 may extend further, fibs will be adjusted accordingly
- Setup: B-1,2 down
- Confluence: Supply zone
- Trigger: 30m Reversal from sub 2
- Conditions: Must form an impulse down followed by a corrective bounce.
- Notes: If the markets are going to take the bearish route I will look to short directly through the indices. This same setup can be applied to $NQ