This price structure on the S&P is a very high probability bearish price structure. The primary bullish pattern in play is the orange bullish pattern where price is currently at C. The Second bullish pattern in play is the red bullish pattern where (Red B) is an extension of (red XA). The red B is the significant swing because it is an extension of its XA. The blue bullish pattern in play will likely fractal ( where it becomes a left wing on a larger bullish pattern ) before reaching the downside target area. (Notice all three bullish patterns are at/near their C points)
The two bearish patterns that are highlighted are valid Unions so those are the patterns that validate the price structure. The larger cream bearish pattern and the smaller blue bearish pattern are what create the bullish patterns in play. This next move down should be significant and it is possible my downside target area is conservative. I consider this the final leg of the bearish cycle which I anticipate will create a bottom.
I am anticipating that price will hold at/below the Red A swing.
The two bearish patterns that are highlighted are valid Unions so those are the patterns that validate the price structure. The larger cream bearish pattern and the smaller blue bearish pattern are what create the bullish patterns in play. This next move down should be significant and it is possible my downside target area is conservative. I consider this the final leg of the bearish cycle which I anticipate will create a bottom.
I am anticipating that price will hold at/below the Red A swing.
