near the top?

    Posted by douglas51 on 25th of Apr 2012 at 01:38 pm

    I think that with the ES closing in on a 5th wave high with negative divergences being sen, as well as positive divergences in the VXX on its new lows, we are nearing a top.

    Am I wrong?

    Matt & Steve had already

    Posted by tom on 25th of Apr 2012 at 02:23 pm

    Matt & Steve had already requested more time frame information so I won't but I am going to assume your using some shorter timeframe chart like a few minute or higher tick etc. 

    I am not the best at EW but I think you probably could count 5 waves on one of those time frames using the low from two days ago as your start but then what I think you have to see (speculate) is whether it is a 5 wave completion of a new up-leg or of a counter trend bounce.

    Look forward to seeing your clarifications and Matt & Steve's thoughts.

    5th wave high, what time

    Posted by matt on 25th of Apr 2012 at 01:51 pm

    5th wave high, what time frame, I assume you mean 5 min, but I don't see 5 waves, try to be more specific and post a chart.  Otherwise, XLF financials testing the 20 day MA as resistance so that's something to take note of.  On the SPX daily chart, the MACD is getting close to crossing, and price is getting closer to the April 17th high which is important to watch, we're review tonight.  On a 5 min intra day basis, if a new high forms in the afternoon that takes out the morning high, it would set up some divergence

    I would follow the VIX over the VXX, I don't like how the VXX trades, a lot of pro traders don't bother to trade it.  

    douglas51 - when asking such

    Posted by steve on 25th of Apr 2012 at 01:47 pm

    douglas51 - when asking such a question please be more specific in the time frame (and levels) you are commenting about below. 

    Feel free to post a chart with such labels which makes it easy to visualize.

    With that said, the SPX is up against resistance and now overbought on the 60 minute charts.

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