The last rally in the first week of 2017 - 2233 to 2282 - could possibly be the last wave of wave iii -1.42% leg. There's also a subtle bear impulse wave off 2278 (red line). Daily and now weekly is showing decent divergence along with impending wedge break.
The news is also confident that Trump stepping into office is good for equities . While that is true, I think it may be prudent to look for nice corrections before jumping in for the next run up.
I'm looking at shorting at these levels when wedge firmly breaks down with tightened SL above 2282. The target is 2210-2206. Then looking to buy there for next 100+ pts rally targeting 2330-2365. At this point EW rules we shouldn't expect bears to break down the blue line yet.
The news is also confident that Trump stepping into office is good for equities . While that is true, I think it may be prudent to look for nice corrections before jumping in for the next run up.
I'm looking at shorting at these levels when wedge firmly breaks down with tightened SL above 2282. The target is 2210-2206. Then looking to buy there for next 100+ pts rally targeting 2330-2365. At this point EW rules we shouldn't expect bears to break down the blue line yet.
