IWM
Sp'daily5
Trans
Summary
Today was a really interesting one to be part of.
I exited early in the morning, - largely due to my Tuesday entry being not so great. Anyway, a gain is a gain, and I even took a minor Long Oil (via USO) position around lunch time - which I'm holding overnight.
It does look like we can now say this...
1. sp'1597 was the multi-month cyclical high
2. We've now seen an initial wave'1 down, which comprised 5 waves.
3. We're due a small wave'2 UP, which will probably take 2-3 days.
Where it gets exciting is considering what will happen when we break below the key low of sp'1538.
I think there is 'free money' of 60pts to the downside, taking us on a VERY swift and fierce move down to the 1480/70 zone - where there is very significant support. Considering the action of the VIX in the past few days, I believe the sp'1480s would probably equate to VIX in the mid/upper 20s.
There is a 'small chance' of flashing to much lower index levels.
A little more later...on that rather interesting scenario.