Stocks did what they've loved to do over the past two years or so....kick me in the twins and prove my wave count wrong for all the world to see. This is why I have moved to trading the euro much more. Stocks and EWP have just not worked out well lately.
Regardless, The above count remains valid but Minor 2 needs to top this week. Look for a flip-flop sideways or choppy move higher early this week leading into a big reversal. Any sign of reversal that occurs below the Primary wave ((2)) high would have me get short.
The Drop Like a Rock Scenario for U.S. Markets
In my last post I mentioned that the euro was showing signs indicative of a bottom forming. I suggested that the bears reduce risk at those levels. That proved to be a wise move as the EUR/USD has shot up in a clearly impulsive move (5 waves). So the one larger degree of trend is now higher. I suspect it's probably just an A wave within a larger correction. So the path of least resistance right now is up. The EUR/USD's bottom at 1.2041 should remain intact for a little while. Since the current rally is probably a correction, I'm not real interested in trading it. I have no position in right now, but will look for opportunities to short once it shows signs of topping and reversing. But for now, I'm just sitting quietly and patiently at the table with my hands folded in front of me, back straight up in the chair for perfect posture, and a smile from ear-to-ear like a good little trader - waiting for my chance to pounce.
Since a zig-zag may be unfolding in the euro right now, this might be useful to you guys: Basic Elliott Video Lesson -- How the Zigzag Measures Up
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.