3 waves down and A-B-C up

/NQ is within its ichmoku cloud. Breaking down is a temp sell signal.

I took profits on my long and sold again a small amount, expecting one more thrust down. There could be more to this move down based on hanging man candles.

Edit: I will close that position when Matt's DVDS short officially closes on its own.

A PSAR based stop is at 4068 for longs on /ES.

/NQ and /ES are on support. It is time to cover shorts from the top of the range.

The subsystem will not give a losing trade! It is perfect!

Seriously, this dropback was expected before another push higher based on an EW wave count for wave 2 down or A-B-C down.

supply zone 4160-70, three peaks on RSI(5): https://stockcharts.com/h-sc/ui?s=%24SPX&p=30&yr=0&mn=1&dy=0&id=p87246523737&a=584490632&listNum=61&cmd=print

yes, short at resistance at the top of the range. That is Trading 101.

yes, completed 5 waves on /ES.

On a higher time frame -- about 3 times higher  than the one on which 5 waves are about to be completed --  it is expecting a 5th wave pullback below 13,048 before going higher (and presumably breaking out of the one-month long consolidation range).

Steve, no, my program is indicating that wave 5 is still in progress, and wave 4 has been completed counting since the low on 4/26.

For /NQ, the PSAR trailing stop is underneath the price now on the daily charts

racerick, look for pullbacks to the rising uptrend line.

I take up your offer.  As a concept, take an entry in supply or demand zone coupled with a weak momentum or divergence for a reversal trade. Take another entry in the next supply/demand zone. Wait for a move into the opposite zone to exit partially or fully. This is provided that market is range bound within ichimoku cloud on the weekly or monthly chart.

Buying pullback on a pullback to the nearest "strong" (based on good volume spent there) demand zone if the momentum is strong and indicate higher prices.

This could be subdivided further into 3  thirds of the distance between the demand and supply zone. Do nothing in the middle third, allow trades in the other thirds close to the supply/demand zones on the first visit.

I will pass along your way good videos demonstrating this method if I see them.

From a fresh supply zone to a fresh demand zone, ... and back. A super profitable subsystem if only it could be coded in Tradestation!

Matt, is DVDS looking for another drop in order to exit its position? I am referring to the proverbial wave C down as part of wave 4. 

Edit: We might be following a path similar to that in November of last year.

Larry Williams made a good call last year. He also made a couple of calls about shorter duration which did not pan out as advertised.

I am watching money inflows and outflows as a criterion of a bull market or a bear market rally.

An interesting piece of insight was offered to me on this perspective of how to pick a top . The market this year was likened to that of 1987, which was refusing to fall all year, and when it did fall, it collapsed without much warning. The thing to watch after a drop is an initial reaction or rebound. Today a rebound is strong. When a rebound is weak and a path of least resistance is to the downside, then watch out below!

Gold is resilient at 1980-85 support. If that support breaks, /GC should retest its break-out range of 1950, which will be a buying opportunity at least for a strong bounce. Euro is strong and does not show signs of a reversal yet.

$VIXis down too. Party is back on!