In case you are wondering, an “A” wave and a “C” wave are usually broken down into 5 smaller waves. The “B” wave usually has just 3, or sometimes just 1 large wave.
Since we appear to have already had 2 waves yesterday and today’s open was a 3rd wave, with the current selling being the 4th… it stands to reason that the insiders bought the wave 3 up yesterday and are selling now to steal the sheeps’ money again.
The retail sheep (bulls) are always late to the party and will buy this 4th wave down dip. Then it will rally back up one more time tomorrow to suck in some more retail sheep. Then next week it should drop nicely to shake them all out.
We should get close enough to the previous highs for the retail sheep to think there is going to be a breakout to a new high, so many more go long. Then that should end the 5th wave up of the larger “A” wave up.
So, you then drop it on Monday/Tuesday to panic those retail bulls. That move down should be a “B” wave down. It could be only a “one day” move, followed by the “C” wave to a new high as the retail bears now get squeezed from shorting the “B” wave down after it ended.
This is supported by the charts too… at least from what I see in them today. Things can change of course, which means I’d have to change the forecast too. But for now it does appear that we are back on track to putting in that new high of 1405-1415 once that “C” wave up finishes late next week or early the follow week.
We appear to be in a wave 4 down now with wave 5 up yet to come (probably tomorrow). This isn’t an “ABC” move but now a 5 wave pattern move. So, this whole move could be just a larger “A” wave with “B” down on Monday/Tuesday… followed by “C” up later in the week to my original target zone of 1405-1415 spx.
This is just guessing now. I’ll need to see the charts next week to see for sure if that looks to be the plan or not. For now, I’d wait until tomorrow to see if this is indeed a 5 wave move up.http://screencast.com/t/q2F1NvKVAAO3
BREAKING NEWS! CONGRESSMAN RON PAUL’S BILL TO AUDIT THE FEDERAL RESERVE JUST PASSED CONGRESS! Audit the Fed has PASSED the U.S. House by a vote of 326-99!!
This should be fun!
Charts are mixed now. I see the 4h and 2h with plenty of room on the upside to go. I see the 60m overbought and needing to sell off. I see the daily wanting to turn back up but could go lower. Overall though I favor the bullish case because the volume is still very low and we’ve already sold off 51 spx points already. The bulls also need to stay above the 50dma on the daily before the week ends. Tough call as always, but I’m 70/30 bullish/bearish for tomorrow.
In case you are wondering, an “A” wave and a “C” wave are usually broken down into 5 smaller waves. The “B” wave usually has just 3, or sometimes just 1 large wave.
Since we appear to have already had 2 waves yesterday and today’s open was a 3rd wave, with the current selling being the 4th… it stands to reason that the insiders bought the wave 3 up yesterday and are selling now to steal the sheeps’ money again.
The retail sheep (bulls) are always late to the party and will buy this 4th wave down dip. Then it will rally back up one more time tomorrow to suck in some more retail sheep. Then next week it should drop nicely to shake them all out.
We should get close enough to the previous highs for the retail sheep to think there is going to be a breakout to a new high, so many more go long. Then that should end the 5th wave up of the larger “A” wave up.
So, you then drop it on Monday/Tuesday to panic those retail bulls. That move down should be a “B” wave down. It could be only a “one day” move, followed by the “C” wave to a new high as the retail bears now get squeezed from shorting the “B” wave down after it ended.
This is supported by the charts too… at least from what I see in them today. Things can change of course, which means I’d have to change the forecast too. But for now it does appear that we are back on track to putting in that new high of 1405-1415 once that “C” wave up finishes late next week or early the follow week.
We appear to be in a wave 4 down now with wave 5 up yet to come (probably tomorrow). This isn’t an “ABC” move but now a 5 wave pattern move. So, this whole move could be just a larger “A” wave with “B” down on Monday/Tuesday… followed by “C” up later in the week to my original target zone of 1405-1415 spx.
This is just guessing now. I’ll need to see the charts next week to see for sure if that looks to be the plan or not. For now, I’d wait until tomorrow to see if this is indeed a 5 wave move up.http://screencast.com/t/q2F1NvKVAAO3
EURUSD Chart analysis:
http://niftychartsandpatterns.blogspot.in/2012/07/eurusd-chart-analysis_26.html
Good call red, looks like we’re breaking through that resistance
SPX Analysis after close:
http://niftychartsandpatterns.blogspot.in/2012/07/s-500-analysis-after-closing-bell_26.html
http://img.ly/le15 http://s3.amazonaws.com/imgly_production/5058771/large.jpg
BREAKING NEWS! CONGRESSMAN RON PAUL’S BILL TO AUDIT THE FEDERAL RESERVE JUST PASSED CONGRESS! Audit the Fed has PASSED the U.S. House by a vote of 326-99!!
This should be fun!
Charts are mixed now. I see the 4h and 2h with plenty of room on the upside to go. I see the 60m overbought and needing to sell off. I see the daily wanting to turn back up but could go lower. Overall though I favor the bullish case because the volume is still very low and we’ve already sold off 51 spx points already. The bulls also need to stay above the 50dma on the daily before the week ends. Tough call as always, but I’m 70/30 bullish/bearish for tomorrow.
GOLD Testing resistance levels:
http://niftychartsandpatterns.blogspot.in/2012/07/gold-testing-resistance-levels.html
SILVER Chart analysis:
http://niftychartsandpatterns.blogspot.in/2012/07/silver-rectangle-and-resistance-line.html