When the consensus is skewed either one way or another the market will always do the opposite from what everyone expects it to do. This is because human emotions rule the markets. Be very alert if you are overly bearish.
Unless this rally breaks over 866 S&P then I feel we are highly susceptible to crashing down. This is the final wave of the decending triangle IMO.
Short term stopped us at the 50% retracement from 1-28-09 high.
I think the only reason we broke out of the original upper down channel line was because of the light holiday trading at the end of the year which caused a little fakeout. Run the top along 11/4 and 11/5 highs and through 1/28 and 1/29 highs. Bottom support line is right at 804.
It hit resistance at 842. The correction could be over. Here is the evidence:
1.) A valid ABC corrective has played out for the last 2 days.
2.) An ascending triangle formed and on correctives these can only occur as the B waves. The width of the triangle was 14 points making the target 845 SPX. It came close.
right on!
prince0427 3 years ago
When the consensus is skewed either one way or another the market will always do the opposite from what everyone expects it to do. This is because human emotions rule the markets. Be very alert if you are overly bearish.
davecata 3 years ago
Unless this rally breaks over 866 S&P then I feel we are highly susceptible to crashing down. This is the final wave of the decending triangle IMO.
Short term stopped us at the 50% retracement from 1-28-09 high.
I think the only reason we broke out of the original upper down channel line was because of the light holiday trading at the end of the year which caused a little fakeout. Run the top along 11/4 and 11/5 highs and through 1/28 and 1/29 highs. Bottom support line is right at 804.
TxChristopher 3 years ago
D7
Can you do a video on how to use Fibonnacci?
Thanks!
doubletrig 3 years ago
great way to put it
madphat7 3 years ago
3.) Advance/decline ratio volume was weak.
4.) VIX bounced off its .618 retrace perfectly and formed a hammer on the 60 minute chart. It is near the lower BB too.
5.) All indexes retraced sufficiently both in price and time.
6.) The [C] wave traced a nice 5 wave channel up to 842. C waves typically end in 5 waves.
After todays lazy rally, it will be hard to see tomorrow as a down day. But thats the call here because the waves and indicators suggest it.
factor82 3 years ago
Beautiful work, Factor.
ds3v3n 3 years ago
It hit resistance at 842. The correction could be over. Here is the evidence:
1.) A valid ABC corrective has played out for the last 2 days.
2.) An ascending triangle formed and on correctives these can only occur as the B waves. The width of the triangle was 14 points making the target 845 SPX. It came close.
factor82 3 years ago