#PinkPig has gotten Festively Plump
By
Zac Mannes
SPX/ES & NDX/NQ are easily completing their Leading Diagonals.
I think the (a) of ii should be pretty sharp and fast like the "Vol Event" in Feb (and Aug 2015) and then after spending a week or so climbing back up in a (b) we drift down in (c) into front week Sep to catch a FibFan line for support right around where it intersects the 61.8% retrace of this LD. #PinkPig
I would have preferred more of the b wave inside (v) to scalp more long from what I trimmed on July 10 & 13, but I was very happy to trim more of my longs from the April, May, & June lows yesterday.
The Razz colored c of (v) on ES/NQ could still try for a micro 5th of an ED (if they hold ~2800/7350), I may or may not scalp that move, but since I am maintaining a good amount of L/T long exposure and my "hedges" for circle ii are some SPX Butterflies with low premium risk I am not too worried.
The Dow would not complain about getting just a touch higher either, but none of them NEED any higher.
CABPCR hit a pretty extreme .26 yesterday and I see it as making a higher divergent low from this higher high of the (v) of the LD in SPX.
Also... it is possible that this "LD" is really an ED in NQ/NDX for all of 5 of (5) of P.3, but many solid big names argue for more extension over the next 9-12mo, but that is contingent on the circle ii holding support.
IWM can also get hit harder in this correction, as well as a few other sectors that we post about in StockWaves.
