On 2/2/18 the SPX bottomed near two significant Fibonacci points.
A .236 retrace of the rally from August 2017 is at 2764.78
Also equality is a common relationship between waves "two" and "four"
Minute wave "II" - boxed was 110.02 subtract this from the SPX high at 2872.09 targets 2762.07
Bottom on 2/2/18 was 2759.97
Also I've recently learned a technique to discover a markets value using the - Market Profile method.
This technique determines the daily value area of a market. If closing price is too far from value, the next trading day
price could gravitate back to value.
I use the S&P March E-mini contract to discover value.
On 2/2/18 Value closed at 2795.00 a drop of only 28.50 points from the 2/1/18 close.
On 2/2/18 Price closed at 2860.00 a drop of 61.75 points from the 2/1/18 close.
The difference between Price and Value is a huge 33.25 point difference.
Very high probability that price will gravitate back to value on 2/5/18.
This plus the SPX closing very close to two important Fibonacci support areas presents a very high reward to risk ratio on 2/5/18.
If the SPX gaps up on 2/5/18 go long the first minute of trading at 9:30 AM -ET.
The forecast time frame of comparing value to price is limited to one trading day. If you go long the SPX close out the position before the close on 2/5/18.
A .236 retrace of the rally from August 2017 is at 2764.78
Also equality is a common relationship between waves "two" and "four"
Minute wave "II" - boxed was 110.02 subtract this from the SPX high at 2872.09 targets 2762.07
Bottom on 2/2/18 was 2759.97
Also I've recently learned a technique to discover a markets value using the - Market Profile method.
This technique determines the daily value area of a market. If closing price is too far from value, the next trading day
price could gravitate back to value.
I use the S&P March E-mini contract to discover value.
On 2/2/18 Value closed at 2795.00 a drop of only 28.50 points from the 2/1/18 close.
On 2/2/18 Price closed at 2860.00 a drop of 61.75 points from the 2/1/18 close.
The difference between Price and Value is a huge 33.25 point difference.
Very high probability that price will gravitate back to value on 2/5/18.
This plus the SPX closing very close to two important Fibonacci support areas presents a very high reward to risk ratio on 2/5/18.
If the SPX gaps up on 2/5/18 go long the first minute of trading at 9:30 AM -ET.
The forecast time frame of comparing value to price is limited to one trading day. If you go long the SPX close out the position before the close on 2/5/18.