Point and Figure
We have formed a long pole of 15 X's. A 50% retrace of this pole would put us below 3,509. We are still in the previous range of 3,240 to 4,454.
Here are the recent long pole of O's, from the big wedge breaking down, which have not resolved 50%: 10/31/2018: 23 O's, resolves if price moves above $6,901. 11/15/2018: 19 O's, resolves if price moves above $5,885. 11/20/2018: 29 O's, resolves if price moves above $4,920. It could be a while before we see all 3 resolved, but I would be cautious shorting until at least the third is resolved with a price move above $4,920.
Yesterday's daily closed gave us the same set up as on 12/08/18: A daily RSI bull div that could cascade into a 3-day RSI bull div. For those who played it the way I recommended on 12/08/18, great job. Sadly that wasn't me! So now I am in a bit of a pickle because we are coming up on a 3-day bull div confirming at today's close, but today was an insane +10.00%~ day, and I hate to buy following a big day like that.
In 2 hours we will confirm a bull div on the 3-day RSI.
This is big news because it is the first sign of momentum slowing on the 3-day chart, which is the same chart we broke down from a large wedge on. This is a clear buy signal. Also there is good confluence with some lesser quality oversold indicators such as VIX FIX (green bars) and TD Sequential (green numbers).
TLDR: Best time to buy was yesterday's 1-day bull div close. For those of us who didn't, we'll need to watch lower timeframe and find an entry to play the 3-day bull div which confirms in 2 hours. 3-day timeframe is pointing towards relief for bulls.