Here's the wave count we have been showing for awhile. A
push down from here would put in a wave 5, but it looks like it
will be wave 5 of 3 instead of 5 of 5. By the looks of the
MACD, a nice divergence will set up. 5th waves generally make
news, but sometimes truncate and only test the lows i.e. minor lows
or double bottom. When the wave 3 of 5 is put in, then
a larger 4th wave rally should last more than a day, could
last a couple weeks possibly. The trend is down, but don't
get complacent on the Short side. The 804 area is key on the larger
4th wave.
Posted by junkmaylbox on 26th of Feb 2009 at 05:53 pm
Matt, What is the target for the wave 5 of 3 or of 5 now? Is the
the same as 720ish that Steve mentioned in yesterday's update? And
does the target depend on how you choose to label the current wave
(3 or 5)? Thanks in advance.
720 is one Fib projection and interestingly that also
corresponds with wave 5 equaling the length of wave 1 so it is a
logical area as wave 5's are often about equal to wave 1.
However, remember
it doesn't have to go there. Wave 5's most of the time make
new lows, but they
can also truncate with
only slight new lows or simlpy a retest.
I would like to see the stochastics get oversold on the 60 min
chart, when that happens, keep a tight watch on shorts, remember
the saying sqeezing blood out of a turnup
SPX 60 min chart.png Here's the
Posted by matt on 26th of Feb 2009 at 05:25 pm
Here's the wave count we have been showing for awhile. A push down from here would put in a wave 5, but it looks like it will be wave 5 of 3 instead of 5 of 5. By the looks of the MACD, a nice divergence will set up. 5th waves generally make news, but sometimes truncate and only test the lows i.e. minor lows or double bottom. When the wave 3 of 5 is put in, then a larger 4th wave rally should last more than a day, could last a couple weeks possibly. The trend is down, but don't get complacent on the Short side. The 804 area is key on the larger 4th wave.
SPX 60 min chart dynamic
Target for wave 5 of (..)
Posted by junkmaylbox on 26th of Feb 2009 at 05:53 pm
Matt, What is the target for the wave 5 of 3 or of 5 now? Is the the same as 720ish that Steve mentioned in yesterday's update? And does the target depend on how you choose to label the current wave (3 or 5)? Thanks in advance.
720 is one Fib projection
Posted by matt on 26th of Feb 2009 at 06:25 pm
720 is one Fib projection and interestingly that also corresponds with wave 5 equaling the length of wave 1 so it is a logical area as wave 5's are often about equal to wave 1.
However, remember it doesn't have to go there. Wave 5's most of the time make new lows, but they can also truncate with only slight new lows or simlpy a retest .
I would like to see the stochastics get oversold on the 60 min chart, when that happens, keep a tight watch on shorts, remember the saying sqeezing blood out of a turnup
interesting work , as usual.
Posted by PA on 26th of Feb 2009 at 05:52 pm
interesting work , as usual. I was planning on getting long on next move down but will have to factor this in. Thanks