My count from Friday looks like it held. We got an ending pattern that fit just right. We should see a retrace at least to the 38.2% fib line, but I think we have a very high likelihood of hitting the 50%, which would be consistent with this move so far.
Besides the fact that ES 842 has been an hotly contested pivot, it is also the 50% retracement line and it is where wave c = wave a * 1.618, so we have a # of fib clusters hitting at the same point.
I'll be adding to my shorts at both ES 834 and 840. After this, we should break down something fierce. Note, we could go higher than these numbers, so if we do don't panic. The chart doesn't even have a hint of bullishness until we break ES 875, which is highly unlikely.
Here's the zoom'd out view using an hourly chart. You can see that once the trendline breaks it will be a quick drop to the Nov lows, which I don't expect to hold. After that, we should see a real selling climax!
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DJI looks like a retest of tri formation -
ReplyDeletehttp://www.screencast.com/users/jacksoo/folders/Jing/media/1d7d5e12-7d91-4d40-a4fc-5c0757efead9
jacksoo,
ReplyDeleteAgreed, the DJI is looking the weakest. Isn't it odd that throughout this bear market it always looked the strongest. Not any more.