ES - is rallying as we expected on Friday
On Friday we expected a drop in subwave c of ( b ) down. It dropped lower than I expected but that did not violate my count and did not affect my expectations for another rally in subwave ( c ) of wave ( ii ) up.
That emotional drop on Friday evening was a perfect bear trap.
We expected that drop to be followed by a strong rally in subwave ( c ) up to complete a corrective wave ( ii ) up.
This is what we are getting here. Ideally, that subwave ( c ) up has to stretch to at least 100% extension of subwave ( a ) of wave ( ii ) up = 2,987.50
That is a minimal target. But it can easily stretch to 2,997 = 123.6% ext of subwave ( a ) up.
In my Premium Chat I reported long trades of SPY 298. 299 and 300 calls on Friday evening. I will be looking to book profit on them early next week,
ES - 4,500 tick bar chart updated at 7.30 PM on 9-29-2019
Now lets look at a fractal in play. You can see the current position marked by the red arrow.
Off the top of wave ii up we should get a strong drop in wave iii down. Lets scroll below to see 240 min chart of ES to understand the magnitude of a possible drop.
I am looking for a strong drop into the Green Target Box. But it should have an impulsive structure and will not come overnight. That is why I will be looking at 280 puts expiring mid November.
ES - 240 min chart updated at 7-30 PM on 9-29-2019
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