/ES S&P 500 - Is the Medium Term Bull Market Over Post-Brexit?
Well, we always need to admit when we are wrong, and we screwed the pooch on our last /ES idea. Fortunately, we all know to trade safely, so risk must always be controlled in the case analysis proves incorrect. It turned out that the long sideways movement was a long, complicated, and drawn out corrective wave. Just as confidence began to sag, the final impulse came when employment figures were announced.
This just goes to show that patience is always key, and corrective waves can be very deceptive.
With this being said, it appears as though the final correction and 5th wave impulse have formed a triangle, and we are just breaking down on the 4 hour chart. It's still too early to assume any positions, in our opinion, but the time will be soon when the market decides what to do. We should be due for a higher cycle correction to the downside, but this higher cycle will likely be corrective in nature as well in our opinion. This does not mean it won't make new highs, but it also means there is a high chance for a major slump at the end of the next higher cycle.
Right now we are expecting a down turn but are not yet ready to commit.
This just goes to show that patience is always key, and corrective waves can be very deceptive.
With this being said, it appears as though the final correction and 5th wave impulse have formed a triangle, and we are just breaking down on the 4 hour chart. It's still too early to assume any positions, in our opinion, but the time will be soon when the market decides what to do. We should be due for a higher cycle correction to the downside, but this higher cycle will likely be corrective in nature as well in our opinion. This does not mean it won't make new highs, but it also means there is a high chance for a major slump at the end of the next higher cycle.
Right now we are expecting a down turn but are not yet ready to commit.