Regarding the ED that might still be in play: If wave 4 of the ED bottomed at today's low at 1171.70 SPX cash and we are now in wave 5, then I calculate that wave 5 cannot exceed 1208.13 or this count is invalid.
Because it's common for the 5th wave of an ED to extend slightly beyond the upper TL, wave 5 is likely to end somewhere between 1203 and 1208.
I have ES trading below your support envelope (91 SMA on 30 min chart - 0.5%), but DJX trading above (370 EMA on 5 min chart - 1.35%).
ReplyDeleteConfirmation of downtrend would be to have both of them trading below, right?
Right
ReplyDeleteThanks, Steve.
ReplyDeleteRegarding the ED that might still be in play: If wave 4 of the ED bottomed at today's low at 1171.70 SPX cash and we are now in wave 5, then I calculate that wave 5 cannot exceed 1208.13 or this count is invalid.
Because it's common for the 5th wave of an ED to extend slightly beyond the upper TL, wave 5 is likely to end somewhere between 1203 and 1208.