15 min Chart
5 min Chart
Our last posts had been using the $SPY charts, because Tradingview.com don´t permit the intraday charts in the $SPX, so we are using our old thinkorswing sistem, because we saw in our posts from today that the "neckline" has been broken a little thing and we have our own theory that the EW and fibonacci has to be exactly. In this $SPX charts we see that the neckline hasn´t been broken and give price, a space to run. We have to respect this index above the $SPY chart.
The first question is: Has the neckline been broke? and our answer is NO.
The second question is: Is minor wave c (green) in play? and our answer is NO,is in place, because the minute wave 4 (violet) has respect, exactly, the "third EW rule".
The third question is: Is intermediate wave 2 (blue) in place and our answer is YES.
The 4th question is: What happens now and our answer is that, maybe a gap down on monday starting a violent intermediate wave 3, down or maybe more shaking next days with minuette and minutes wave 1-2 that could take price,again to the 1,390 area but cant surpass intermediate wave 2, starting a softly wave 3,down. The $VIX has drop today 10% and is very,very bullish( near 15) and our $NYAD "top pattern" theory, make us a call that a top has get in place, today. We think the odds could favor the first alternative and form an "island top" or "bull trap" with a gap down, because that is what market wants when a major turn is going to happen and today has been way bullish and as some old guru said: "always, everyone is wrong" and this time, everyone has been bullish
Make your own bet. Cheers and happy wekend.We are going to rest from this intense week.