Chart Wave Trading

$SPX $SPY $ES_F Let us be clear, anything could happen. There are two sides as to whether or not we are entering a new bull market or not We wanted to share one possibility for everyone. We have shared in the past that $700/7,000 was a potential top in the market. We see confluence with fib extensions at that level and markets tend to like round numbers. The chart below is of $SPX in 3month candles, starting with wave 1 in the early 1990s. There is a count that shows we are in a wave 5. Now, the Elliott wave Theory is subjective and an art form and is not a perfect science. There are different counts that are a possibility. We wanted to share one of the possibilities so people are aware.

$HOOD Bear and Bull theory Bear Theory: Markets are in a state of uncertainty, and things may be foggy in the short term which could drag this one down further potentially. However, our bull theory shows that price has completed its primary ABC correction and is about to start our primary wave 3. Now this is a LONG term forecast and chart and there would be a lot of substructure in between. Additionally, we would like to see price get back above the weekly 50MA to give this count some more validity.

The weekly 50SMA on $SPY will be the markets first major level to watch for. It currently is sitting around $645

$SPX $SPY $ES_F Let us be clear, anything could happen. There are two sides as to whether or not we are entering a new bull market or not We wanted to share one possibility for everyone. We have shared in the past that $700/7,000 was a potential top in the market. We see confluence with fib extensions at that level and markets tend to like round numbers. The chart below is of $SPX in 3month candles, starting with wave 1 in the early 1990s. There is a count that shows we are in a wave 5. Now, the Elliott wave Theory is subjective and an art form and is not a perfect science. There are different counts that are a possibility. We wanted to share one of the possibilities so people are aware.

$SPY $SPX $ES_F To say the markets look strong from a technical standpoint would be a stretch in our opinion. Here is why... From the October 2022 lows, we have 5 waves up. We can be fairly confident that the count is correct because of the bearish divergence on the RSI and MACD that is prevalent at our suspected wave 5 top. (Yes, there are other bullish counts, but this count seems more likely in our opinion) And when you take a look at the daily chart, the RSI and MACD bearish divergence is a lot more prevalent and the structure we have forming at the top resembles an "ending diagonal in a bull market" Taken from " Elliott Wave Principle" by Frost and Prechter, they quote "In all cases, they (ending diagonals) are found at the termination points of larger patterns, indicating exhaustion of the larger movement" (Image shown below) Additionally, the fact that price seems to be consolidating at all time highs raises the concern that we are forming a distribution zone rather than an accumulation zone. Of course, we can't go lower without losing the 50MA. This will be our first signal. The weekly 50MA sits above our first set of fib levels that we would be targeting and if buyers lose the 50MA, then we highly suspect these fib levels will be tested A trigger is likely needed and that is where the uncertainty comes into play. We have spoken and posted in the past about 7,000 being an important level and that has proven to be true. The $SPX tapped 7,000, but has since fallen and continued to show weakness Other influences is a very weak crypto market that is getting pounded and the massive run we saw in precious metals. All of these may be very clear signals in hindsight. We have been persistent about sharing charts like $GIS $TGT $UPS $VICI $NKE $EL $LULU $PFE $UNH $NVO because these tickers have NOT being following the $SPY and we chant help but notice the weakness on the chart for the reasons listed above. **Note, we also have been sharing $PYPL, and we feel the pain as well. The fundamentals look outstanding for the price, but again stock sentiment is a real thing and $PYPL has had the worst of it. Curious to see if the CEO can turn the narrative around That's it for now, but we wanted to share an in-depth analysis on the chart alone and what we have been noticing over the course of these last few months.

$MU Updated chart showing the extended wave 3 We updated our wave 4 and 5 price targets to reflect the parabolic price action

$NFLX Price stayed above the blue "bear case" line and we see our next stop being the 200% extension As we know, stocks do not move in straight lines and there will be substructure built into the move

$LMND Sad to see such a beautiful chart break down. We have been charting this one since it was deep in wave 2 and rode it all the way to the 161.8% extension. Now our wave 4 correction has violated our wave count and we need to adjust. No worries. This is why we trim at the 161.8% extension. Sometimes pullbacks turn into corrections Remember, we let price action lead the way. It proved to us that the markets and this chart is in a deeper correction. Below is our old chart and now our new one showing the targets for this pullback. Price is approaching the 0.618 fib level and the first major VWAP. IF this fails, we expect price to fall slightly below, where our second VWAP awaits. As you can see, we have heavy volume sitting above the 0.786 fib level