Market Milestones: ABC or 12345

[Image] Good morning ! Welcome to Friday, where weekly candles die, or are they born? It really depends on how you look at it I suppose. Anyway, just like the November 10th gap and go, the February 21st gap and go has been a pretty big deal for the market. It looks to have stopped the bounce from the October low from becoming a strong five wave pattern off of the lows. Now it looks more like an ABC wave, which would act as a corrective pattern in the overall bear market. Now don't freak out, sell everything and crawl into a small dark cave just yet. Even if that is the case, we are at a strong support currently and should, push higher into the neckline of the double top and the unfilled gaps. This is where the risk reward to the short side get's good again. The risk reward to the long side was pretty bad at the beginning of February but it is pretty good, at least in the short term, at the beginning of March. That being said, the $408-$420 area is where the risk reward will start skewing to the bear side again. The good part about being a trader is you are able to change your mind and change your thesis once more data is available. "One candle can change everything, even your life." - Jerremy Alexander Newsome. Now you might be asking yourself if our current 12345 pattern down is the wave one of a larger five wave pattern that will take us to new lows? That is a great question that I do not know the answer to and neither does anyone else. But we can map out areas where we will be more bullish and more bearish. Whether we will revisit/make new lows before going higher on the SPY or not, the risk reward has to make sense for all the trades that you take and you need to know exactly where you are wrong on each and every trade. Check out the SPY chart below. [Image]( ETF of the Week Our ETF of the week this week is SPDR S&P Regional Banking ETF (KRE). You can learn more about KRE [here](. KRE has a lot of the similarities to what we were just talking about on the SPY. However, it also had a strong gap and go on Thursday that did not fade. It has broken through all of it's daily moving averages and is showing a lot of weakness. It may not bounce all the way back up to the 100Dsma and 200Dsma, but that would be a great area to look for a short. [Image]( Enjoy your weekend, Yates Craig, RLT & TPP Market Analyst Disclosure: You are responsible for your own trading decisions. ALWAYS, do your own research before investing in any of the above securities. This is not a solicitation to buy/sell ETFs or securities. NEVER invest money in ETFs or stocks that you can't afford to lose. You can lose all of your capital by trading any securities mentioned. These ETFs/securities are very volatile and gain and lose value quickly. We reserve the right to freely trade in any mentioned ETFs or securities. We are not compensated by any mentioned companies. We trade ETFs and securities based on our opinion of intrinsic/possible future value only. We are not registered investment advisors, so always do your own research before buying any securities. Unable to view? Read it [online]( If you no longer wish to receive mail from us, you can [unsubscribe]( Sent from: Real Life Trading in Nashville TN 37221