The 2 on the above chart is a 2nd wave top to the 5 down ending this morning as well as a 2nd wave top to the 5 down last Thursday. This imbedding of 5's within 5's is a windup for a powerful future move. In this case the low Thursday should be taken out by a comfortable margin. It does not matter what the wave structure is going into last Tuesday. The smaller degrees will still play out below 1123.50. This appears as activity within a 4th wave. So the low 9/30 looks like it will be a 4th wave low, unless it really uncorks a decline.
I1 bottoms Thursday at the close. Unless DJI takes out critical support, currently at 10,650, I'll stand aside from Friday on unless a decline breaks this moving average -1.35%.
I shorted the Euro earlier today. For the charts surrounding this trade follow this.
One possibility is that SPX is tracing out an Ending Diagonal. Too early to tell for sure if that's what's unfolding, but if it is, it's one of the most tradeable patterns as long as you're sure it is indeed an ED.
ReplyDeleteThey are tough to track as they are unfolding though. For example: The top of wave 1 of the supposed ED could have occurred at Friday's high or at yesterday's high. Friday's high would be a better fit because you'd have a clear abc pattern from that high to today's low (even though the "b" wave slightly exceeded Friday's high).
I'll check out a diagonal. We surely have enough 3-waves, eh?
ReplyDeleteWhat about diagonal DJI from Tuesday's high?
ReplyDeleteI'll post a chart.
I'm bringing up a chart platform to take detail back farther than 10 days to verify a 3-wave into Tuesday's high.
ReplyDelete