Following my last short call on S&P500 because of the ending diagonal, I am now calling for a 2nd short, this time also with a strong magnitude. Below is the daily chart:
One thing to note here: the recent retracement 1) ended near to the previous down wave 4, and 2) the retracement is near 68.2% Fibonacci Retracement Level.
The first target that I set is for it to end at the primary cycle wave 4 (see the horizontal line). But because this level will mean that down-wave 3 is shorter than down-wave 1, thus I don't expect it to be the end of the down move and project that it will move down to the bottom of the uptrend channel.
One thing to note here: the recent retracement 1) ended near to the previous down wave 4, and 2) the retracement is near 68.2% Fibonacci Retracement Level.
The first target that I set is for it to end at the primary cycle wave 4 (see the horizontal line). But because this level will mean that down-wave 3 is shorter than down-wave 1, thus I don't expect it to be the end of the down move and project that it will move down to the bottom of the uptrend channel.
