Wednesday, May 20, 2009

Follow through today will confirm the down move

Well certainly I got it wrong in my last post as futures gapped up and moved to a higher high; however, the push was still in my upper zone of a wave B pullback, so I added to my positions near the highs. I now have 100% of my put postions and 75% of my QID/FAZ position. Since I was preparing myself for a possible push to 943, I wanted to leave some room to average in. Looks like to my benefit, we did finally put in a wave b high as the market dropped and took out the prior day's lows.

This wave c should be impulsive. The first part of this wave should also be impulsive and take out the prior wave a low before ending. If it does not, then this move down may be weaker than I am expecting. We should be taking out those lows by tomorrow if not today.

1 comment:

  1. rich, it looks like we will finish off the 5 waves today around 875. What kind of bounce do you expect for Friday?