Tuesday, March 9, 2021

Potential Attenuated Wave ' V ' At Close

Update 9:58am EST: Looks like a new small leg up started at ES 3856.25.
ES 3927 that was a target from yesterday looks to be the intended print so far that could give a full optimum wave ' V ' at a higher degree. VXX  took out it's prior low and is now printing a positive divergence on daily indicators albeit a small one so we will have to see.

Ultimately we are watching for VXX to hit the low zone at 14.36 as a top zone in the market whatever SP-500 does to get there.

Pre-open 3/10/21:
 Tiny 5-waves down to 3856.25 and 62% retrace to 3883.25. Technically still in a small ' v ' up until takes out ES 3850.25 (small ' iv '). An aside note: VIX  may have printed a leading expanding diagonal and almost fully retraced by 1pm yesterday where it filled it's lower take-off gap.

Looked like a struggle to get to 3901.25 exactly as VIX closed a low gap and bounced (temporarily or more?). VXX stopped short of it's prior low. VXX indicators still above lows.

Wave length ' iv - v ' [yellow border labels] was optimal based on length wave ' i '  ( ' i ' x 1.815 ) but was less than maximum target length ' ii - iii ' which accounts for the attenuation. Small ' iv - v ' today extended to make the less than maximum target on the next degree higher - could indicate possible weakness short-term or more.

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