My casual viewpoint is that this up leg may have a bit more juice to the up side before any major reversal or retrace. I'm thinking that we'll see that open gap above on SPX fill at least.
RSI suggests a longer term breakout from this weekly downtrend with at least 210 pts to the upside. Still looking for 4800 by years end.
I checked ES chart for my trades in 2021 from Oct 13 to Oct 26, L4318.75 H4590, made $26,412.50, most from 10/21-10/25, double form 5 lots per trade to 10 lots per, green 15k those 3 days alone. Then it retraced 50% in the subsequent 2 weeks. lost 12k. Am I worried another 50% crash, sure I am.
10% upside on the backs of the Magnificent 7? Naaaa. Consumers are pinched B1. Those rate hikes take a bit of time to do their thing, IT spending will drop, Black Friday will flop, and the Mag7 bubble will pop.
i don't know what a shotgun formation is what was meant in relation too the exhaustion gap, but it was a nice call!