Tuesday, March 17, 2020

Another SuperCycle Bear Setup?

Update: 3/18/20: 8:20 EST. Chart 2 move got delayed sort of- VXX is going towards a high target at 67-ish first. This could set up a restart of chart 2 move all over again or we go straight to chart 1 move which would be a bigger bounce. How big-not sure just yet but still do not see a bottom signal clearly. It could still print soon. There are positive divergences waiting to spring.

Original post
Could be heading for a gap fill on the ES CASH 2555-2645 zone (or higher). VXX also has a gap(s) below it. Setting up the next collapse which would definitely be par for the course. Vectors are not aligning with a bottom pattern on this move up. It is most likely a bounce as part of a setup to continue down soon.

Chart 1 shows the potential for a larger setup that is entirely possible given positive divergences developing on breadth data. Chart 2 shows a more immediate set up possibility. Both could occur in sequence. Chart 2 scenario first creating a new low for 'C' and then chart 1 scenario creating a larger wave for the next set up possibly to the inflated 'D'?. Alternate is the market does none of those. Whatever transpires, there is not a confirmed bottom showing in the vectors- possible bounces only.

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The bots will flag here when they see a top. (1/25/202/20/20)
..and possible bounces/bottoms: (2/28/20) , {3/6/20, 3/9/20,    ?   } x 3**
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