If Plan A was to play the soft support bounce in distribution…
If Plan B was to play the breakdown if the market flattened out to accumulation then
Plan C is what to do not that the trend resumed the mark down.
The market cycle as shown by the 34ema Wave is clearly resuming the downtrend as the angle steepens lower back to a “four to six o’clock” angle and this changes…well,, EVERYTHING. In my prior post I laid out my plans for the bounce off the soft support and the potential for a breakdown if the Wave transitioned into a sideways accumulation cycle.
Now that the Wave is in mark down, we’re back in trend following mode. Here’s the zoomed in look at the entry levels for a swing short:
I pulled a Fibonacci Retracement from the last major move which was a rally to show the downside support levels. There’s a good chance that the 88.80 minor psych level to the 161.6 Extensions at 88.47 will be support. I’m looking for a bounce to either the 78.6 Fibo or the bottom line of my Wave (red) to short into AS LONG AS THE WAVE MAINTAINS THE MARK DOWN ANGLE. There you have it: Plan C.
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