SPY: I favor a another wave down soon

From the daily chart you can see we are still in an intermediate down trend with the current price very near the down trend line. Also there was a recent gap down starting at 399.4. Price action seems to love to close gaps. I guess it is just fun to do. And we are just a 1 point from closing the gap. There are currently potential negative reversals in the daily and hourly RSI's ( dashed lines.) Put together this suggests to me another wave down is just ahead.
Remember all such analysis is imperfect so wait for price action to support this idea. You then can use the most recent high as your stop is price then reverses.
Ifffff this count is correct the wave down would be a 3rd wave or a C wave both of which can at times be fast and furious.
Hope this is helpful. Have a great week. Finally thank God for Martin Luther King for all his courage to improve the USA.

Commentaire:

Gap closed today. Will it drop tomorrow??