with Anthony, ZigZag & Platy
It is evident from a range of cycles that we are nearing a short term high.
However, before i jump fully into a short position i think it may be best that i scale in as im looking at the potential for another move higher. Futures are currently trading at 1344, however i see the potential for upside into the 1360-1370 region outlined in the attached chart and calculated using a measured move approach in confluence with the ChangeInTrend pitchfork methodology.
In terms of downside it may be worth looking at the wave structure. It appears that we have now completed minor wave 5 and major wave 4 meaning that we should now move up into a major wave 5 high. I wouldn’t like to guess at this stage how long this is going to take for it to play out. However, im sure that now we are moving upwards again we will revert back to a mini wave 5 structure in each minor wave. As opposed to the mini wave 3 structure we saw on the way down. Therefore as we have completed major wave 4 it is unlikely we will breach the 4 June lows. I’ve highlighted the area of 1279-1285 as a potential retest zone.
A look at the Natural Cycle for the USD is indicating that the dollar could start to move up in the next couple of days before moving down again into late June where a high in the S&P500 is expected. Given the time cycles for both the USD and the S&P500 the expected down move could be sharp but short lived.
The 10, 20 and 40 day Hurst cycles are hinting at a low in the 18-22 time window. The cycle progression charts are suggesting we are weaker into 15-18 June. So i will have to reassess at the end of the week where we are at. A short but sharp drop is likely to shake out weak longs, ill just be reloading to the upside.
Enjoy the rest of the weekend.