Market Extended Correction Lower, Then Continues Uptrend

S&P Candlesticks




The market extended its correction lower this morning to complete the WXY double zig-zag correction I mentioned yesterday, then it proceeded with its larger uptrend with a huge surge higher this afternoon. Today's action creates yet another bullish candlestick on the daily chart as you can see in the above S&P chart. The bulls are in full control as any sell off in the past week has been stopped by the bulls and pushed higher. You can see this by the long wicks on the underside of the candlesticks in the above chart. It shows a lot of bullish support around the 1190-1200 level in the S&P. The bulls are still in control. For this bullish indicator to be invalidated, and to possibly signal a reversal in trend to the downside, I'd need to see a close beneath 1184. Until then, this candlestick pattern paints a bullish picture.


S&P Cash Wave Count on 5min Chart




The above wave count is not ideal, but inside a larger correction wave counts aren't often ideal anyway. Today we completed wave Y of a WXY double zig-zag correction that I have tentatively labeled a larger wave 2. We are now in wave 3 which means lots of bullish pressure much higher from current levels. Without aggressive buying tomorrow and early next week, it will call this wave count into question. But with declines falling in 3 wave segments and rallies unfolding in 5 wave segments, the larger trend appears to still be up. I don't feel this small correction this week was enough to fully alleviate the overbought condition of this market, so I doubt I'll get long anytime soon. A new high on the year probably just means the most recent rally is just extending a bit higher. A new high on the year in the S&P will stop my short position out and put me back to neutral, but I'll still be on high alert for signs of a reversal to get back in short.


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.

Stock Market Looking Bullish

Unfortunately the market has not wanted to fall and appears to still be in "bull mode". Notice the above 5min S&P cash chart. We have a nice 5 wave rally followed by 2 three-wave declines I labeled as a WXY combination correction. Going up in 5 and then declining in 3s is basic EWP stuff and suggests the larger trend is up. There are a series of lower lows and highs that have formed so until that trend is broken the bears can hope for the best. But the evidence right now suggests further rallying ahead of us. If the 5 wave move is correct, then it's probably a wave 1 and we're about to see a very strong wave 3 up anytime now. So if I see strong internals and volume along with price strength tomorrow, I might be inclined to jump on the long side for a short term trade. But we'll have to wait and see how the market reacts.

So we're basically at a fork in the road where the next big move in the market should tell us where the larger trend is going and I can jump on board with a position accordingly. Right now, the evidence supports the bullish case with the 5 wave rise and 3 wave declines following it, but the risk/reward favors the bears at this point. I'm currently still short but will stop out when the S&P makes a new high. When that happens, I'll look at the internals of the market, if they're solid then I might take a long position.


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.

Market Running Out of Room to Rally

Well I thought we had a small completed 5 wave rally at yesterday's close, suggesting we'd have an ABC zig-zag correction higher where waves A and C would be composed of 5 waves advances. So yesterday I thought that 5 wave advance was wave A. That was clearly not the case as the market just charged higher all day today with strong internals and volume. The bears were non-existent. So it was a good day for the bulls. But one strong day doesn't mean the bull run is on now for the next several weeks as tomorrow can easily reverse all the bullish action today. But it needs to do it quick because we're running out of room to the upside here to still consider this count correct. Yesterday I said the Dow completed 3 waves down, suggesting its drop was just a correction and that a new high might be in the cards. The Dow is almost there. But the other indices still sport the 5 wave drops so I'm not sure a new Dow high will be followed by the other indices. What is concerning though is that the rally from yesterday into today looks a lot like a 5 wave advance, and Apple earnings are getting everyone excited again, so it seems likely this market will continue higher early tomorrow morning. But, until the S&P makes a new high on the year, the other bearish evidence remains in place and sets this market up for further losses.

With the action today creating a 5 wave rally, my confidence in the short term bearish case has waned significantly, but it will take a new high on the year in the S&P to ultimately destroy the short term bearish outlook completely.


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.

Market Correcting in a Wave [ii]

S&P Cash Index Wave Count




The S&P and Nasdaqs charged to new lows today making nice 5 wave declines In the S&P, the 4th and 5th waves are tough to label, but the ugly triangle I have above is a good start for now. Today the NYSE had more decliners than advancers and just a bit more volume to the upside than downside with the Nasdaqs and Russell 2000 small cap indices struggling despite the Dow's strength. So it was quite a lopsided unhealthy rally from the lows and not an across the board bullish run higher; something we'd see in a correction, not the start of a fresh new bullish surge. Looking at the above S&P chart, it's possible that wave [ii] ended this afternoon since it rallied to a common retracement level just above the previous wave 4. But it's quite sharp and looks like a 5 wave move, suggesting that it needs to subdivide further and higher before it tops in wave [ii] and reverses. Also, the action in the Dow also suggests further upside.


Dow's Bullish Non-Confirmation




An element of caution is warranted for the over-aggressive bears since the Dow has been resilient to the decline so far, and especially was quite strong today. It did not make a new low for a 5th wave like the Nasdaqs, S&P and Russell did. This leaves a 3 wave decline for the Dow. Now the weak internals today make me think the Dow is not leading the market higher at all and that people are just fleeing to higher risk assets and putting them into the solid blue chip companies in the Dow for protection; hence the reason the high risk Nasdaq Composite and Russell closed down today despite the Dow's strong showing. So it's possible that the Dow may eek out another high while all the other major indices do not, and then the market reverses lower for the S&P's wave [iii]. Right now, that's my best guess at this point. My current short positions will stop out if the S&P makes a new high on the year, but if it does, I'll have my finger on the trigger to re-short real quick on the next signs of a top because just a two day mild drop is not enough to alleviate this massively overbought condition we're in right now. So I'm short term bearish as long as the S&P's highs on the year remain intact, and know that my gut will be tested in the short term as the Dow's telling us the market will rally further in the very short term.


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.

Stock Market Registers AT LEAST a Short Term Top

S&P 500 Cash Index Short Term Wave Count




Today the market finally ran out of gas. After showing extremes in various indicators, the market sold off hard today. Although it closed off its lows, the bulls were unable to regain control and push the market significantly higher into the close. The late day rally also fits well into the S&P's wave count as a 4th wave, so we should see some continuation to the downside on Monday. The S&P is sporting the best short term wave structure from what I can see at this point, so I'm charting my count there for now. If we can break today's lows real early on Monday, it will give us a real nice 5 wave drop from the highs, and allow me to get aggressively short on the ensuing corrective rally since the larger trend would clearly be down. So I'm looking for a quick continuation downward on Monday, followed by a corrective rally that will top and reverse before exceeding yesterday's highs.


Dow and S&P Divergences






So yesterday I pointed out that the Dow made a new high while the S&P did not. You can see what I was talking about in the above charts with the first set of blue lines. You can see that it led to a big selloff today. Although divergences between these two indices doesn't always result in reversals, it's good to pay attention to them as they often offer good early warning signs. Also notice that at the end of the day today we had another divergence with the Dow making a new high and the S&P not doing so. Will this lead to the same result as it did before? a selloff? I think so. The wave count is incomplete as shown earlier, and with the divergence shown in these two indices late in the day, the evidence points toward lower levels early Monday.


NYSE Internals




Today's selloff was done with conviction as you can see from the above NYSE internal data. 92% of its volume today was to the downside, and decliners outpaced advancers 4.32 to 1. So the bears had the upper hand today as the bulls stayed on the sidelines. I'm not going to get into total volume today because it was options expiration and that will skew the numbers a bit.


Goldman Sachs - OUCH!




The big news story today was about cream of the crop firm, Goldman Sachs, being charged with fraud by the SEC. I'm sure lots of politics are behind this, but whatever the motivation is, it was a surprise to the market. Just look at Goldman's daily chart above. It's ugly.


SUMMARY


So it appears the long long awaited short term top and reversal has registered. With one more shot down on Monday to break today's lows, we'll have a nice 5 wave decline from the highs this week. Because of that, we will know that the larger trend is down, and that any large rally is a correction and should be sold. Only a break above yesterday's highs would negate the short term bearish view. My initial target for the decline is still the 1171 area in the S&P, but judging by the structure and behavior of the decline, my targets may become much much lower.


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.

Brief EUR/USD and Stock Market Update

On Monday I mentioned that the EUR/USD had a gap left from Sunday's open that should be filled at a bout a 100 pip profit from the current levels (click here for original chart). Today, the EUR/USD closed that gap so I'm lowering my stop loss to 1.3566. I have no real grasp of the larger trend and it's possible 5 waves down from the November 2009 high has completed, so I don't want to be too aggressive or greedy on this trade. So I'll keep lowering my stop as this pair treads lower until eventually I get stopped out at a profit.


As for the stock market, we have a nice sell off right now with the Dow down over 100 points. We've seen these occur several times in the past few months where the sell offs are bought up later in the day. If we can maintain the losses, or even accelerate lower, it would be very encouraging for the bears (correction: replaced "bulls" with "bears" here). A strong rally as the day wears on and into the close would put us back at square one in looking for signs of a top.


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.

Market Finishing up Subdivisions Before Topping; Prechter on CNBC's Fast Money

The Dow made a new high today but the S&P did not. So it's possible we'll get some pullback tomorrow if this divergence holds. When the S&P makes a new high with the Dow, then this divergence is erased and we will continue to count the unfolding subdivisions higher into a top. With options expiration tomorrow, I expect to see repositioning and some volatility take place. The Dow and S&P appear to be unfolding in slightly different wave structures right now, but should reconcile these differences as they both move into a top. The constant continuation of the rally into further overbought territory only strengthens my bearish position, and any sharp rally higher will only lead to me adding to my shorts. Once I can confirm a top with high confidence, I will get aggressively short at that point. So it's a waiting game from here.

Bob Prechter on CNBC's Fast Money (given about 45 seconds to speak, and then was forced to listen to screaming bulls talk over him. Enjoy the 45 seconds.)





Thanks to blog reader Jimbo for posting this video because I would have missed it otherwise. I used to watch FastMoney (FM) everyday when Ratigan and Mackey were on, but now the show is crap in my view with perma bulls doing cartwheels all day on the show.

(below are just a copy of the comments I left in response to Jimbo's post)

This is unusual for Prechter to go on here because he's said many times he doesn't like getting into shouting matches with people so he usually only does interviews if he's the only one on. Perhaps his subscriptions have tapered off a bit so he's spreading his wings into areas he normally doesn't go into.

And I'm actually glad those guys on FM are laughing at him and blowing him off because that only strengthens his case in my view. The FM crew preaches to the mainstream masses, and if they were scared or on board with Prechter, that would be concerning. But their blind optimism and dismissal of Prechter's caution is encouraging for the bears. I watched FM the past few years and no one was calling for a major top and decline and most of the time they spent the whole show talking about stocks to buy as the market descended lower. Big bears Fleckenstein, Nourial Roubini and Doug Cass always get a lot of crap from the FM crew. During the last big decline, some of the FM crew were bearish and expressed caution here and there in the short term, but no one on that show prepared us for the magnitude of what 2007-2009 gave us, NO ONE did. But Prechter did give us the play by play on it from start to finish. Prechter should have asked them where the fu$@ they were in October 2007 when people should have been extra cautious, not throwing "Fast Money" at their buy recommendations? Why doesn't the Fast Money crew run down the list of stocks they recommended to the public to buy during that time and compare them to Prechter's recommendations? FM missed the last top, so I don't expect FM to give us the scoop on a major top this time around either.


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.

S&P Made 3 Waves up, Probably has Further to Rally, then Perhaps a Major Top

S&P Cash Index




So the S&P didn't read my post yesterday to know that it was overbought and should fall soon. But that's okay, I'm not offended. The extension and strength of the rally suggest it's a wave iii instead of a wave v that I suggested yesterday. This allows for another down-up sequence before a top. With options expiration coming this Friday, it shouldn't be difficult for us to accomplish that.


MACD Histogram




Above is a daily chart of the S&P cash index with the MACD histogram. The histogram shows us the divergence between the moving averages it charts (not shown). So a healthy and strong uptrend should be accompanied by the histogram increasing as well, which would indicate the moving averages are trending strongly upward. When the histogram moves in the opposite direction as price, it MAY signal an exhausting trend. In the above chart you can see that since March, price has charged aggressively higher while the histogram has declined and now gone flat. So momentum behind the push higher has waned. Now this is not a timing indicator since it can continue to exhibit this diverging behavior for a long time, but when I see stuff like this I know it's a bit late to jump on with the uptrend and that I should be looking to get short.


RSI




Above is a daily chart showing the RSI, another momentum indicator. Here you'll notice that the RSI is well into overbought territory and is the highest it's been for the entire rally from March 2009's lows. Again, this is not a timing indicator, but it does let us know when momentum is running out, or in this case, extended.

I can go on and on with these momentum indicators and fibo retracement levels and other stuff, but we've been grinding out these indicators for several months only to be faked out time and time again. The market will roll over when it's ready. The key for me is to stay mentally focused and disciplined to keep my eye on the target, and that's for a very large wave [3] or C decline to occur soon. Once it gets rolling, we'll know, and we can then make sound decisions to increase our profit potential. Patience is key.

Three things stand out to me currently that now have my attention at looking for a larger top than previously expected:

1) The RSI is at such a high extreme that it leaves the implication that perhaps this upcoming top will be larger than what I've been expecting. The extreme overbought nature of this market is astounding, and may lead to just as an astounding decline.

2) I have three friends that have retirement accounts that they manage themselves but they are far from economic or finance savvy at all. They missed most of the entire decline in 2007-2009, but have been cashing in on the big rally from the March 2009 lows. They know my very bearish long term position, along with Prechter's, for a major top and they know that I've been wrong as well recently. But today was the first day that all three of them boasted to me about how financially savvy they are, and how much money they've made on this rally, and then preached to me about how to trade the markets, and laughed about how wrong I've been for a "major top". For non-financially savvy folks like this to be boasting about how financially savvy they are and then rub in my face how right they've been screams at me that this rally from the March 2009 lows is in its latter stages. Optimism, even at the micro-levels, is at a real extreme. Pay attention to it.

3) And lastly, let's not forget the reliable VIX indicator. Yesterday the VIX confirmed the sell signal which means sometime in the next few days we should have a top and reversal. Considering all the momentum and sentiment extremes that exist at the moment, it's quite possible that a much larger top may be forming than originally expected.

We've been faked out several times for "the top" to register in the past, but that doesn't mean we should ignore signs of a major top being in from now on. Again we are approaching what appears to be a major turn in the market to the downside. We don't have to catch the absolute top tick, there should be plenty of time to make a well thought out disciplined approach to maximizing profits if "the top" does occur.

Let's see what happens in the next 1-4 days.


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.

S&P Did Not Confirm New Highs of Other Indices Today; VIX Issues Sell Signal

The wave count for the short term I posted yesterday does not appear valid anymore due to the depth of the correction that continued into today. Right now I'm not sure what the short term count is, but it appears to be part of a 5th wave, or maybe a "b" wave within a 4th wave flat correction. There are two things of note that occurred today, and both have bearish implications. The first is that the Dow and Nasdaqs all made new highs today but the S&P did not. Oftentimes this divergence will occur right before larger turns in the market. So we'll see if this holds true with a sell off tomorrow. Second, despite the market closing up today, the VIX also closed up and above the lower bollinger band which gives us a nice sell signal. With options expiration this Friday, we could be in for a wild ride, and the evidence points to the ride being to the downside. The market seems poised to turn lower at any moment.

The EUR/USD has not closed the gap from Sunday yet so I'm still holding short that pair in anticipation that it will be filled soon, and perhaps continue lower from there with the stock market's decline.


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.

Market in Final Stages of Rally Before Falling Lower Toward 1171; EUR/USD Still Looking Bearish

S&P 500 Cash Index




The market sructure on the smaller timeframes appears to show that we need one more push higher to complete a 5 wave rise which should be a wave v of (v) of 5 and finally end this very persistant rally from the 1050 area. The only problem with this outlook is that if you look at my 15min chart above you'll notice that wave i is much sharper and deliberate than wave iii. Although this breaks no EWP rules, it's still a bit unusual so I'm cautious in hanging onto every little detail of this count. But it's a good basis for the short term and when to expect a top to be in. The fact that it does seem like a 5 wave rally is unfolding and that it's a wave v of (v) of 5 which usually shows signs of weakness anyway, I'm putting this as my preferred count. The first target for the decline will be the 1171 area (correction from the 1071 I originally posted). I'm currently short using SDS and will add aggressively to it when I see signs of a reversal in place.


EUR/USD




The EUR/USD still sports a nice opportunity for the bears to get short this pair in anticipation that it will close the huge gap left from Sunday's open. With the Greece news all over the place recently, and the rise from the lows looking like a corrective 3 waves, I'm all over this short trade and am looking for lower levels in the EUR/USD, and higher levels in the US dollar.


VIX Setup




For those of you who subscribe to Elliott Wave International's Financial Forecast newsletters, you'll know that they have lots of nice technical indicators for optimism and internal market strength, some of which were shown in today's newsletter. Some are proprietary so I won't mention them here, but the VIX indicator is quite common and something I've followed for quite some time. Today we will see that the VIX's reckless descent has caught up to this bull run as today's close was beneath the lower bollinger band on the daily chart. This is showing complacency in the market as investors continue to think protecting positions with put options is a waste of money. Once the VIX closes above the lower bollinger band, it will be a sell signal. This is one of the most reliable technical indicators out there, so today's action got my attention.

So the evidence is falling into place, although it's been doing so for several weeks it seems, that the market is in its final stages of uptrend for the short term and that selling pressure should soon hit the market. Despite the constant fakeouts to the downside, if we play the market right and control risk properly with a disciplined strategy, we should still be able to profit on a downturn here despite being stopped out a few times in the past few weeks.


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.

S&P Surprises to the Upside; EUR/USD Should Fill Gap Soon

I guess it shouldn't be much of a surprise at this point that the market didn't fall as expected, and has rallied to new highs since my last post. The uptrend has been strong, but perhaps too strong. I still have to beat the same drum in that the S&P is finishing up a 5 wave advance and a pullback to at least 1171 should occur soon.



Above is the 1hr EUR/USD chart which opened yesterday with a huge gap up that has not been filled. I think this pair will fill that gap soon, which is about 100 pips away right now. If one can control risk enough, this would be a good shorting opportunity.

More later this afternoon.

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 Internet Access

I will have little-to-no internet access the rest of the week so I might not be able to put up any posts, and if I do they will be very brief. Nothing has changed from yesterday. A top might be in that should take the S&P to at least 1171 but probably quite a bit further before it bottoms. If the market chugs higher it still has the thrust from the triangle structure that should eventually mean a sharp move back to at least that 1171 level before considering a bottom. So I'd be looking for a top and reversal anytime now. At the latest, I'll be back in full next week.

New S&P High Makes 5 Waves up from Triangle, Reversal Anytime Now

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.

S&P Finishing up a Thrust from a Triangle that Started Last Week

The market appears to be in the final subdivisions of a thrust from a triangle that started last week. Looking at the daily, you can see that it's possible to count the rise a completed 5 wave advance already. But looking at the smaller timeframes, it appears we are still going to edge higher at least one more time.




Above is just a close up of the triangle structure. Normally, thrusts from triangles are very sharp and straight affairs, however this thrust is quite elongated as you can see from my intraday chart above. Notice that wave i. is very strong as it burst out of the triangle, but then it was sold aggressively for wave ii. Then wave iii. was another strong burst higher, only to be met with a brick wall that made the market move sideways the rest of the day. To make a perfect 5 up from the triangle, I'd like to see another sharp burst tomorrow. This would be a good opportunity to start getting short in my opinion. Thrusts very often reverse immediately to the apex of the triangle, and in this case that would be around 1171 level. So my strategy is to ease slowly into short positions on the S&P and then load up on signs of a reversal in order to ride the market down to at least the 1171 area. It may snowball into a bigger decline from there and that would be more than okay for me, we'll see.


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.

Thrusting from the Triangle

The market decided to just thrust from the triangle this morning with a very sharp rise into about midday where it reversed nicely, only to be bought up at the close. Quite a see-saw day. The thrust in the morning is very typical of what to expect after a triangle, but is very short in length and time as it stands right now, even though it made a new high. The decline was much weaker and longer than the preceding rise and was bought up at the close, most likely because no one wants to hold short over a long weekend, especially with jobs data coming out tomorrow.

So to keep things in proper proportion and get the "right look", I'm labeling this morning's rally as a wave i within this final thrust upward. The midday decline was wave ii, and we're in wave iii right now. If correct, the market should shoot aggressively higher on Monday and take us to a possible test of 1200. But remember, thrusts are terminal moves that are immediately completely reversed when complete. So thrusts' sharp and fast nature shouldn't scare EW'ers, they should make us happy because we see opportunity.

A break below 1167.15 would mean the thrust ended today, and the market is in a larger correction, or has completely reversed trend in wave [3] or B. If the market shoots higher Monday above 1181.43, then I'd expect it to continue higher for a day or two and attempt to assault the 1200 level before topping and completely reversing to at least the apex of the triangle around 1171.


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.