We still have unfinished business on the upside with the diagonal. A new low, especially one exceeding 10470, turns everything bearish. Until then, the diagonal is the play.
Steve, I have looked at the Ending Diagonal (ED) in more detail and here's a problem: The motive waves in an ED are supposed to be zigzags, but the 1st and 3rd waves of the ED count as 5 wave impulses (at least to me). So that would mean that we do not have an ED. We could have an LD (because motives waves in an LD can be impulses), but that would be very bullish for the market longer term and does not fit with your I1 forecast.
So I'm thinking that we are dealing with some kind of complex corrective wave pattern here from the July low. As a result, I'm back to trying to figure out where this complex correction will end.
If the move down from the April top is a Leading Diagonal (LD), then we would likely have more to go on the upside because it's common for LD's to be retraced 78 percent which would take SPX into high 1100's.
I like the call and the line in the sand. Seeing a lot of giddiness on bear blogs, next week could be tough for 'em. Seems like we in the perfect place for 5 waves up next week.
Shabs A lot of people want to get in on the downside, so they get in on the first drop. This is probably a more complex topping process. 5 more I1 up days, although I still think we top early.
.bmp)
Steve, I have looked at the Ending Diagonal (ED) in more detail and here's a problem: The motive waves in an ED are supposed to be zigzags, but the 1st and 3rd waves of the ED count as 5 wave impulses (at least to me). So that would mean that we do not have an ED. We could have an LD (because motives waves in an LD can be impulses), but that would be very bullish for the market longer term and does not fit with your I1 forecast.
ReplyDeleteSo I'm thinking that we are dealing with some kind of complex corrective wave pattern here from the July low. As a result, I'm back to trying to figure out where this complex correction will end.
If the move down from the April top is a Leading Diagonal (LD), then we would likely have more to go on the upside because it's common for LD's to be retraced 78 percent which would take SPX into high 1100's.
I like the call and the line in the sand. Seeing a lot of giddiness on bear blogs, next week could be tough for 'em. Seems like we in the perfect place for 5 waves up next week.
ReplyDelete--shabs
Shabs
ReplyDeleteA lot of people want to get in on the downside, so they get in on the first drop. This is probably a more complex topping process. 5 more I1 up days, although I still think we top early.
Pima
ReplyDeleteI'll post the diagonal again and use it as discussion point.