RTY in (v) of (III), in sell zoneChart says all. Sell in the band between S/R. not advice, just an idea; GLTA!
Fifth-in-third-wave
SPY H&S in ABC Correction EW 4: To Retest 24 Dec LowChart says all. updated prior post with corrected line positions given interval price changes. C wave length and duration mimics A wave. The H&S pattern appears to be an extension of the correction but note it is also a pennant, or continuation pattern. The trend: still down, entering a fifth intermediate of primary third wave. expect double bottom to retest 233 low. From there it should give a V-notched spike formation and a more powerful rally- perhaps near-vertical back up to or over 260-264. Get ready for fireworks! More to come. GLTA, HNY!
As always, for education and amusement not investment advice, trade at your own risk!
US 30 in ABC correction: A Bull Trap; expect Lower soon!Wow what an amazing jump! Does it mean the bears are back in hibernation? Doubtful.
Boxing Day's record 1k rally was just an impressive a-leg of an a-b-c minor correction after a punishing 3rd Intermediate wave in the current bear wave. Trend is still Bear!
Note in chart the abc pattern extension to 0.50 Fibo coincides with the 0.618 Fib retracement of the intermediate wave, thus a strong double wave effect will likely terminate the countertrend positive corrective wave (4) near 23,300. (Marked by Pincher arrows)
Wave 4 may not rise above wave 1, which terminated at 23824, this yields a cap on 4th wave rally.
Wave 5 will be stunning and terrifying. Bulls that thought it was all over will panic and despair. Traders who short puts will be wiped out.
An estimate of termination for Primary Wave 5 from Fib extensions yields Dow 19072 at the 1.618 extension. An extension lower is certainly possible.
The Fib spiral for intermediate Wave (3) reveals expected floor for (5) at 20542, for a 1.272 extension, and also curtails the subsequent, expected 4th Primary Wave rally to near 22700, at Fib time projection near 19-21 Feb 2019.
Do not be long in this market! Do not start selling puts for income! I wouldn't sell either puts OR calls short in this market, odds are you will get scared into big losses on both sides. Be patient; be careful! Stay away and save trading capital if in doubt. Risk:Reward very poor right now, risk very high, reward likely low.
As always, this post for education and amusement only and does not constitute investment advice; trade at your own risk! GLTA!
Long Term S&P500 UpdateOn the weekly chart, it seems as if we are approaching a top that should give us a reasonably substantial correction sometime during 2018. However, on the shorter term, the market it still pointing up, and therefore, is still good to buy on intra-day and intra-week swings to the upside. Historically, the market finds some kind of resistance when approaching round figures such as 2700 and we must be careful when buying around these levels. It would be a bad idea to start looking for bearish trades before the market gives any evidence.
Overall, I am looking for the market to top out in 2018 and retrace but I expect this bull market to continue and by 2019, we should have new highs depending on the duration of Primary 4.
