3309 Drysdale Ct
Edwardsville, IL 62025
Your welcome. Thanks for everything you and Matt do!
At this morning’s levels @344.35 Wave C also equals 1.618
SPY currently trading at the .382 balance of time and price for
Here is something else to keep in the back of your head. Log and
non log charts. The non-log, especially with Monday’s gap
over the line and the habit for island reversals to occur back
below the line is particularly notable.
Gold long term fan lines. Notice the island reversal created the
past three days as we attempted to hold the standard daily fan
line. Also, notice how the same pattern has occurred on the log
chart at major tops.
Silver bounced off that balance point earlier and is now
balancing again in the opposite direction on a smaller time frame,
marking a great exit for +1% gain.
Now that the gap and go has played out...watch silvers reaction
to this Fib balance in price and time. At 22.30@
That one was telegraphed!
Ready to gap and go tomorrow.
Breaking away over the obvious...watch the not so obvious
magenta, which is the Institutional breakout as opposed to the
Fyi...One of the best technical analysts on the street put a buy
on it yesterday morning.
That sounds right. Members should always consider that charts
are “written” in advance. So, when unexpected news
causes an extreme move that effects the charts, probabilities are
extremely high the bulk of that move will get “erased”
from the chart to reset the chart back to its original state, via
reversion to mean trades, in terms of patterns/symmetries, targets,
Symmetry like this doesnt occur randomly. Especially, after a
top that was telegraphed months ahead of time by a measuring gap
left open at what was to become the midpoint of the entire move
from 2200 to 3600.
Before making any decisions on volume, make sure you know what
you are looking at. In this case 75% of yesterday’s volume
appears to be a coordinated trade/trades. They were done as blocks
of 4 mil, .5 mil and then 4.5 mil.
Trades of that nature are in no way comparable to the spikes in
volume you see everday when thousands of new investors are entering
a thinner, speculative security. In fact, I would dismiss the value
in that type of volume almost completely. First, because it was
likely only one or two buyers and/or one or two sellers. Second,
because the type of institution that would do that trade likely is
not making any kind of speculative bet solely on the value of the
dollar. Instead, it is probably representative of hedging activity
in a portfolio worth billions of dollars.
I can tell you that one the most qualified technical analysts I
know (if you have been around the market long you would know him by
name) was long the Euro into the recent top and has had a standing
order to enter a half position short the dollar at these levels.
That is not a specific timing call, but should give some
Some what ifs?
What if yesterday was a B wave high?
What if Wave C is symmetrical to Wave A?
Fortunately, with today’s charting technology we know the
answer to those questions...here is exactly what it would look
like. No, it is not a coincidence that it would leave us at the
next (.618) Fib line.
As noted earlier, with weak momentum, sitting on a major 50% fib
fan line, and with an open gap below, it is a foregone conclusion
that SPX gap gets tested/filled.
What should you be considering?
We had a parabolic move and then a correction, which bounced off
Demark’s Propulsion Exhaustion Target of 3329 exactly....now
that the market has reverted to the mean, the bounce appears to be
There is an open gap to be filled down near 3340.
There is an open gap to be filled near 3260.
The .236 Fib retracement to the lows is 3257.
We closed on the 50% Fib fan line and will likely fail it just
by closing the gap near 3340.
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