The market ended up having the bearish leg I had been looking for and it not only tested the TA and the 50 day MA but it broke them on a bearish/heavy volume day. So I make some changed to the labels to reflect the 5 waves today and now I am expecting a bounce in the next few sessions. As long as the market stays above 1296, this is a valid W2 of a W3 of 5 Minor. I've been right on every single wave since mid June so hopefully I'll keep the streak going. Also from the Technical Analysis perspective, there is a potential inverse Head and Shoulders in play that targets 1440. So we should have an answer on the next bullish wave. If it is indeed a W3 we should see it go straight to 1370 after this sell off.
I ended up covering my hedge at 1321 expecting a double ZZ but I covered too early unfortunately. So now I am looking to add margin longs at levels as close to 1296 as possible and use that as my stop or perhaps the 50 day ma which sits at 1310. If 1296 breaks, I'd expect the market to find support at 1287 which would be an automatic margin long for me as it would be about 40 points from the Trend Average (an automatic long on sell offs and shorts on bull rallies).
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