Stocks Contiue Higher in Wave (2); Euro in Same Position as Stocks

Stocks have continued higher in Intermediate wave (2) as I've been talking about the past several days.  Nothing new has developed this week to change tjos outlook so I haven't posted anything.  But today's pullback may signal that Minor wave B down has started.  I want to be clear though, I am not a firm believer in trying to dial down corrections to predict every little move as if it were a mathematically and scientifically calculated certainty.  EWP, like all technical analysis, is all about probabilities.  And with several different corrective forms Intermediate wave (2) can take on, and many of them so different from each other, trying to project the wave structure would still produce low probability trades.  My opinion.  With that said, I'm merely tracking it in the above chart with an educated guess.  I usually start counting my corrections as the simplist form, a zig-zag, and then make them more complex as the market demands.  I am neutral on stocks right now and have no positions in equities at the moment.

Bottome line: stocks were repelled at a prior swing high as well as 50% fibonacci retracement right now.  I believe this is only a temporary barrier, with the current decline possibly being the start of Minor wave B.  Once Minor B is over, Minor C higher will be in full force, a strong 3rd wave surge into my reversal zone labeled above.  Once Minor wave C is complete, Intermediate wave (2) might be complete, and then disaster should strike for stocks with a large and very destructive Intermediate wave (3).

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I'm uncertain of the wave count in the euro since it started so choppy and with a lot of 3 wave moves around the high.  So I'm using basic technical analysis, and monitoring stocks in correlation to the euro since they tend to move parallel more or less.  You'll notice here that the euro is also trading at, and having trouble at, the 50% fibonacci retracement level.  Although, keep in mind I'm not using my fibonacci measurement equal to stocks since the euro's fibonacci does not start at the high on the chart.  The reason I'm not starting it at the high in the euro is because it doesn't look like a full 5 waves down from the high, so the next best thing is to measure the length of the sharp decline itself and count the retracement from that only.  Needless to say, the euro is not painting a clear picture here so I don't want to trade it.  But when stocks top in Intermediate wave (2) I will be looking to short the euro along with stocks despite the euro's lack of clarity.

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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.