hey peat , id say that was a pretty positive day for the markets , i saw the 78.6 bounce which could be interpreted as a retest of those panic lows.
my feeling is we may see a bit of a range for now between the low and the rally high,9900 - 7900 maybe a triangle flag set up before next move lower.
i reckon even the bears have got to be feeling a bit exhausted.
i got stopped on a trailing for a result but just missed my target.
looking like a triangle is indeed playing out which should keep it bouncing around before the fifth wave to new lows i think
preferred count looks like in a triangle set up, which in elliot wave theory is most likely a fourth wave before a fifth wave takes us lower , magnitude of wave structure may take us to around 6500.
no divergence on indicators and triangle is relieving oversold levels.
nothing at all to suggest anything other than down.
We now have double positive divergences on the hourly charts, and divergences on every time frame in the major indices. The pivot at SPX 789 should provide some significant support and a positive reversal at this level may be the spring board for a bear market rally.
A butterfly is also backing things up.
finger on the buy button should know in a couple of days
Despite the US market rallying over 6% on friday it was still a nasty week. The SPX broke through its 2002 low on thursday, wiping out the 2002-2007 bull market in only 13 months.
Some technical damage done which points to more juice in this downtrend, looks like its heading to the 600,s for SP
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