2 scenarios:
1) Less Likely: End of Cycle Wave V, correction to 2086.85, 1891.79, 1696.72
2) More Likely: End of Cycle Wave III. We might have a Minor Wave 5 left in the Intermediate Wave (3), and should watch for divergence on indicators. Intermediate Wave (4) short entry from about 2719, correction to 2477.82, 2403.21, 2328.51 (Most probably take profit at 2500)
I believe we are nearing the Cycle Wave III top, but the momentum would probably carry it through to 3000 on Intermediate Wave (5) over the next few months, before the large correction.
Reminder to self: Don't time the market top
1-2 months plan: Be ready for correction on Scenario 2.
Core: Long on main stack, with LT price target at 3000.
Trading: Hedge with short positions on short-term negative news events and/or RSI falling under Daily MA cross below 60 resistance level, for expected Minor Wave 4 and Intermediate Wave (4) events. Cover shorts at TP targets, most probably at 2500 for Intermediate Wave (4).
1) Less Likely: End of Cycle Wave V, correction to 2086.85, 1891.79, 1696.72
2) More Likely: End of Cycle Wave III. We might have a Minor Wave 5 left in the Intermediate Wave (3), and should watch for divergence on indicators. Intermediate Wave (4) short entry from about 2719, correction to 2477.82, 2403.21, 2328.51 (Most probably take profit at 2500)
I believe we are nearing the Cycle Wave III top, but the momentum would probably carry it through to 3000 on Intermediate Wave (5) over the next few months, before the large correction.
Reminder to self: Don't time the market top
1-2 months plan: Be ready for correction on Scenario 2.
Core: Long on main stack, with LT price target at 3000.
Trading: Hedge with short positions on short-term negative news events and/or RSI falling under Daily MA cross below 60 resistance level, for expected Minor Wave 4 and Intermediate Wave (4) events. Cover shorts at TP targets, most probably at 2500 for Intermediate Wave (4).