The above two charts are just updates from yesterday. The S&P made a new high today, making a 5 wave rally from the triangle possibly complete today. The fact that the Dow failed to make a new high as well adds to the evidence that perhaps a top is in right now. Even if the market surges higher again to have the Dow confirm the S&P's rise, it still leaves us with a 5 wave rally from a triangle which means a reversal is right around the corner anyway. The short term target is 1171 in the S&P cash index, but judging by the very weak 5 wave thrust rally, I think the decline will be much bigger and stronger than just dropping to 1171. If I see good evidence that a top is confirmed to be in and there's a good opportunity to enter then I'll get aggressively short with a stop at the highs on the year.
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.
2 comments:
Hello Todd:
I am currently worried about the gold and the dollar and every day I make this question: Quo Vadis?
When the market begin the third wave down(will be?), what is most likely direction for the dollar and the gold?
For now the sky is the limit.
Regards.
Hey Gustavo,
Gold is not my game as I'm not good at analyzing it and have been slaughtered too many times so I just avoid it. Stocks don't seem to be really correlated to the dollar anymore so I'd analyze them separately. But the dollar does appear to be in a larger uptrend so over the longer term I'd be a buyer of dollars.
Todd
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