$spy - wave overview bear Pt 3

We have already technically now seen a clear 5 wave move since the covid low. Even though this isn't my favored structure (wave 5 is not extended and would be smallest wave) it still is possible. If this scenario plays out the next top will not be a local top, it will be a major top as we will then be seeing the decline back into the 300's.

Note: this is not my preferred scenario, I do think we will extend in wave 5, but depending on outline factors (supply chain, taper, etc) maybe this could happen. All we can do is follow price action and know that it is a possibility. Having hedge as insurance is never a bad thing (or tight stop loss to protect profits)

We will continue to watch the daily charts on a weekly basis at the very least. This will hopefully give us more clues of when to go short, BTD, and what is likely next to come.

One thing to really watch is that 30 week MA, if we break it on volume I would be inclined to say top is in and going short would be the ideal trade