So far the SPX shows 3 waves to the downside - another move down
to new intraday lows without overlapping 1183.24 would complete 5
waves down and argue for a deeper correction (at least) over time.
Should 5 waves down complete, then look for a bounce that
would be shortable for the next decline.
The alternative here is that this decline is part of a
corrective 4th wave decline with another push up to follow once
complete.
I have just posted a SPX 5 minute chart above showing a
potential (a)(b)(c) that is one way to view this decline. The
key closing pivots to watch are 1168 downside and 1177 upside so
let's see how this plays out today.
Posted by goldenstate on 19th of Oct 2010 at 10:59 am
Some strength in the financials is making me a little skeptical
that the sell off is wave 4 and isn't the start of a deeper
correction. WFC and GS are up while tech and gold are down. Just
staying alert, weighing out the possibilities and considering the
alternatives.
Comment
Posted by steve on 19th of Oct 2010 at 10:39 am
So far the SPX shows 3 waves to the downside - another move down to new intraday lows without overlapping 1183.24 would complete 5 waves down and argue for a deeper correction (at least) over time. Should 5 waves down complete, then look for a bounce that would be shortable for the next decline.
The alternative here is that this decline is part of a corrective 4th wave decline with another push up to follow once complete.
I have just posted a SPX 5 minute chart above showing a potential (a)(b)(c) that is one way to view this decline. The key closing pivots to watch are 1168 downside and 1177 upside so let's see how this plays out today.
WFC & GS
Posted by goldenstate on 19th of Oct 2010 at 10:59 am
Some strength in the financials is making me a little skeptical that the sell off is wave 4 and isn't the start of a deeper correction. WFC and GS are up while tech and gold are down. Just staying alert, weighing out the possibilities and considering the alternatives.
XHB and IYR
Posted by skyscraper on 19th of Oct 2010 at 11:18 am
Also the strength in home builder also makes me think it is just a small pull back. The way appl bounces...