Crunch time is approaching for Wave 5, which has been a beacon for good results since early 2018. I've added a diagonal line (orange) between the channel path (yellow) to assess very near term movements for wave 5. That narrowing focus provides a crunching view to guide the way.
Regarding wave 5 we're approaching the final process before it eventually corrects, too. Until then, and within wave 5, lower degree wave iii is nearly complete. Meanwhile, the newly added diagonal line will help with navigation in the near term. I expect a downward breach of the diagonal to help guide further expectations (as either wave 4 of iii, or wave iv of 5). Meanwhile, I'm not positioning (long) until that resolves. I don't believe the potential pullback presents sufficient opportunity vs risk to position short (I'm staying with upward trend).
The current intraday high of 2916.50 is an important resistance level as reflected by the Fibonacci extension (right side), and is where an initial attempt failed. I'm not comfortable with the sluggish re-attempt of last week and closed my long position on Friday. I'm more comfortable waiting for a pullback closer to 55 ema area (white line) and expect the diagonal will be breached in that direction, even if we reach a marginal new high early in the new week and remain within the diagonal for now. I'm looking to get long (again) at lower levels for better positioning and another run upward.
Tariff news, USD movement, Fed rate hike(s), election speculation, Sector index changes, etc. will provide plenty of background noise for daily narrative. I'll look for any opportunity those headlines will present to execute on plan, but won't be swayed unless price levels suggest otherwise.
Regarding wave 5 we're approaching the final process before it eventually corrects, too. Until then, and within wave 5, lower degree wave iii is nearly complete. Meanwhile, the newly added diagonal line will help with navigation in the near term. I expect a downward breach of the diagonal to help guide further expectations (as either wave 4 of iii, or wave iv of 5). Meanwhile, I'm not positioning (long) until that resolves. I don't believe the potential pullback presents sufficient opportunity vs risk to position short (I'm staying with upward trend).
The current intraday high of 2916.50 is an important resistance level as reflected by the Fibonacci extension (right side), and is where an initial attempt failed. I'm not comfortable with the sluggish re-attempt of last week and closed my long position on Friday. I'm more comfortable waiting for a pullback closer to 55 ema area (white line) and expect the diagonal will be breached in that direction, even if we reach a marginal new high early in the new week and remain within the diagonal for now. I'm looking to get long (again) at lower levels for better positioning and another run upward.
Tariff news, USD movement, Fed rate hike(s), election speculation, Sector index changes, etc. will provide plenty of background noise for daily narrative. I'll look for any opportunity those headlines will present to execute on plan, but won't be swayed unless price levels suggest otherwise.