Wednesday, June 15, 2011

Stocks Working Toward 1250 Support; Euro in 3rd Wave Down



Internals today were solidly bearish.  Everyone was a seller today, and all day.  Yesterday's rally was a sucker's rally.  No capitulation, no bottom.  Volume even picked up a bit today after yesterday's big move higher.  The bears remain in control.

Below is what I posted this morning:


The S&P relieved some of the oversold measures with yesterday's rally.  I'd have liked to see another day or two of relief rallying to have a better feeling about harder selling ahead but so far it doesn't look like it will do that.  The S&P seems poised to continue toward the 1250 level I've mentioned before.  Right now we just have a series of 3 wave moves all over the place so I'm counting this decline as a correction at the moment.  The behavior of the S&P around the 1250 level and the wave count that develops at that time will help us better assess the bigger picture potential of the decline.  But right now, I'm just targeting 1250 in the S&P.

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The euro's wave ((ii)) bounce was short lived as a new low was established in today's trading.  All signs point to a large sharp move lower being underway in the euro as wave ((iii)) down gets firm control of this pair.

PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.

3 comments:

Hargrave Matt563 said...

If I had to predict the future of the S&P I would have to say we will come off 1250 support hit the 1350 ceiling and we will have ourselves a head and shoulders patters that will take us back down through 1250 support for a break down.This is a speculation, but it'll be fun to see if I'm right... :D
 btw, I don't know much about Elliott wave but doesn't it show that the S&P cycle is coming on the down side,  Meaning the 5th wave is already in on that cycle?

PrincipleAnalysis_Blogspot_Com said...

As of right now I tend to agree with you.  This decline is far from impressive and looks and feels corrective.  So a surge above 1300 or more seems quite plausible.  In EWP, the core belief is that at Cycle, Supercycle and Grand Supercycle degrees are all in a downtrend right now.  If correct, then the all time highs we have in place from 2007 will remain intact for a very long time.

Hargrave Matt563 said...

thanks for the info :)

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