Leading diagonal pullback time
Hello friends. Stocks may have formed a in wave A, which would lead to a pullback in wave B. The pullback for this move often goes to the 0.618 level. Note that the top is *not* in yet, so the fibs are not set in place yet.
The ideal way of trading one of these is to wait for a sharp move below the high of 3, and then short it there with a stop above the highs. This serves 2 purposes:
1: Limit losses easily with the high
2: Confirms that there is selling pressure within the market before you sell
If this idea is correct, we could see a very sharp rally into the 28th, where we could reverse.
Thanks for playing.