Tuesday, August 31, 2010

8/31 10:30

DJI looks like a 5-wave this morning. 

4 comments:

  1. 5 up?

    I'm trying to count 5 down from Friday afternoon's high, but don't see it yet.

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  2. We have an impulse from today's low. Futures are at important resistance. So a minor new high is to be expected. There is a lot of overlap on the decline from Friday's high. Looks like a corrective wave because of the overlap.

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  3. The overlap occurs on the cash chart, which is what I think is more important than futures.

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  4. I agree, yesterday's move down looked corrective. I also give more importance to the cash because it's an index after all and it's derived from the prices of the 500 stocks that make up the index; it's not derived from the futures.

    (But it continues to amaze me how the futures can move up or down overnight and when the market opens, the cash index moves very quickly to the futures price. How does that happens??? :-)

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