Stocks continue to move higher after that big reversal that got my attention a few days ago. Although it seems likely that 5 Minor waves down have completed and therefore finished Intermediate wave (1), the market still has work to do to prove a major bottom is in. The series of lower lows and lower highs on the daily chart is still intact. So it's possible we'll still get another drop lower to a new low in a choppy grinding torturous 5th wave. I am not projecting that move, but I'm simply sayings it's still on the table until a new swing high can be established, breaking the series of lower highs. So getting too aggressively bullish here for a swing trader like me does not seem wise. That new high is above 1195.86 in the S&P cash. A strong break and close above that level will probably get me to finally go long in anticipation of a long and deep Intermediate wave (2) correction higher. Until then, I'm neutral and I wait.
Bob Prechter's EWI is Offering a Free Trading eBook Until October 17th - "Trading the Line"
The euro continues higher but it too has not made a new high to break the series of lower highs and convince me the trend has turned up. You can see I drew a hasty trendline where the euro is currently bumping up against. I wouldn't be surprised that a strong break above that trendline will lead to an imminent breakout to a new swing high above 1.3700 shortly after. From there, 1.4000 is the target. I'm still unsure of the short term direction of the euro so I'm only holding a long term short position here. A strong move above 1.3700, and 1195.86 in the S&P, will probably get me looking at the long side though for short term trading.
Learn Elliott Wave Principle
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.
No comments:
Post a Comment