NOTE: I didn't have time for the weekend post... maybe next week?
We are so close to a big drop I can just taste it now. But I'm still 50/50 on whether we top out for our Extra Large Wave 5 in just one 5 wave series up, or if it subdivides. We'll just have to see where the pullback stops at I guess and then figure out if we are going to see another new all time high afterwards... or just a bounce and a lower low to follow.
This Wednesday is the FOMC and the Fed has already warned us about possibly tapering, so that news is already known to all traders. But, since we've rallied up so much in front of that date you have to wonder if we don't drop into it? I'm just trying to think "What would SkyNet do?" and a sneaky fast drop into early Wednesday to take out the bulls, and lure in the bears would be what I think could trick the most. Then the Fed says "No Taper" and up, up and away we go!
The technicals tell me a drop is coming and this week should start it, but whether that is right away on Monday or even Tuesday I just don't know? I'm just guessing on how it plays out. Other are looking for the 4625 area to get hit first and that's certainly possible, but I'm not trying to pick up the last quarter in front of the steamroller that coming. After the drop is over with then I'm interested.
This market is very ripe for a nasty pullback and I'm still looking for that FP on the QQQ to be the target, (which again is roughly the 4360-70's area), before it stops and turns back up with a strong rally. And unless the 4260 low from 10/1 is taken out I'll keep labeling this move down as a Large Wave 2, with Large Wave 3 up to follow... inside the Extra Large Wave 5 up. I'm going to keep this update short as I've already covered this many times last week. Have a blessed day.