Friday afternoon left 1 more high to be made before the wave count is complete. Projections indicate that it will terminate at the SP futures 1108-1109 level. This will be the end of Minute2.
I1 is on a sell signal, with a low 7/29 of 3.18 which is below the 3.25 sell signal threshold. Because of this as well as daily and weekly resistance clustered around the SP futures 1109.00 level I will become aggressive tonight on a rally.
The DJI cash 220-day M/A crossed Friday at 10,330 with a 150-point envelope giving a maxima for tonight's completion rally of 10,430 DJ futures. The DJI cash 150-day M/A lies above the market at 10,473, which corresponds to 10,423 in the futures.
The following is the SP futures weekly chart with clustering at the 1109.00 level.
There is also a 73-day M/A which crosses at 1109.
Steve
ReplyDeleteCould we be forming a head and shoulder pattern that started the first of July? If this pattern is forming it lines up with I1. So we go down to about DJI 10000 by the end of the week then during the first 2 weeks of August we run back up to about DJI 10400 before the major 3 wave down starts mid August. This is what I see and how I’ll be playing it. I think it will be very important to keep an eye on the technical buy and sell signals, along with I1 they have predicted the tops and bottoms of this formation really well.
Jack C
So you are confident to sell into the rally and not wait for the turn?
ReplyDeleteEastern,
ReplyDeleteIf SP futures rally to 1109 I'll sell it.
7/29 is the low date. If we only decline to 10,000 at 7/28 close then that's it. After that you have 2 weeks of rising I1. I am thinking that the market soon will pull the plug and we'll see a 600 pt down day. I think that it happens this week.
ReplyDeleteSteve,
ReplyDeleteI really hope you're right about a 600 point down day. That would really make my life a lot easier. Lol
Dollar strength seems to be heading up.
ReplyDeleteSteve
ReplyDeleteI'm sitting short right now so either way it plays out I should be on the right side of the trade. I don't see any buy signal in your 2010 forecast for 7/28 bottom. Are you planning to sell your short positions then(7/28) and just wait for an opportunity to go short again before or by 8/13 or will you be looking for an opportunity to go long during those first two weeks of August? It seems like a very dangerous place to be long.
Jack
Jack,
ReplyDeleteIf the market only declines to 10,000 then I'll go long on 7/29