Dollar index coming back in wave b to test the high.
If the DJI comes down to critical support, which is at 11,000, I expect a round-number rally to allow me to short at a better price.
IF, that's IF italicized, the ED that I suggested yesterday is still in play, it looks like wave 4 of the ED is close to bottoming, or just bottomed as I wrote this. If/when it does, the market should take off to the upside. That could happen in tandem with the dollar heading down in the C wave of the ABC you're suggesting it's now in.
If we do get a rally here, the move up to the upper TL of the ED should take the form of a zigzag and will likely break beyond the upper TL (throwover) which would give us an SPX price of 1201+. Once we have confidence that wave 4 has indeed bottomed, I can do a calculation that will tell us the upper limit of the throwover because we know that wave 5 of the ED cannot be longer than wave 3 (because wave 1 is longer than wave 3 and wave 3 cannot be the shortest wave).
Because the trendlines of an ED must converge, if SPX drops below 1168, the ED count will no longer be valid because at that price the TL's will be parallel or diverging.
IF, that's IF italicized, the ED that I suggested yesterday is still in play, it looks like wave 4 of the ED is close to bottoming, or just bottomed as I wrote this. If/when it does, the market should take off to the upside. That could happen in tandem with the dollar heading down in the C wave of the ABC you're suggesting it's now in.
ReplyDeleteIf we do get a rally here, the move up to the upper TL of the ED should take the form of a zigzag and will likely break beyond the upper TL (throwover) which would give us an SPX price of 1201+. Once we have confidence that wave 4 has indeed bottomed, I can do a calculation that will tell us the upper limit of the throwover because we know that wave 5 of the ED cannot be longer than wave 3 (because wave 1 is longer than wave 3 and wave 3 cannot be the shortest wave).
Because the trendlines of an ED must converge, if SPX drops below 1168, the ED count will no longer be valid because at that price the TL's will be parallel or diverging.