As much as we bears would like to see a massive gap down tomorrow morning, the chart still looks like it wants to test the 50% retracement level. This should happen in the a.m. and then we should get a reversal. Of course, we could gap down massively tomorrow morning, so it is definitely safe staying short.
Our first confirmation that we are in wave 3 of 3 of 5 is a break of ES 810. After that, it should be down, down, down. If I have labeled the charts right, then we should break that level sometime this week. So load up on puts tomorrow morning while you can.
Here's an update of the 60 min chart emphasizing the cliff that we are standing on.
Posts
H&S forming on the ES 60min - neck around 807 - tgt around 740......??? What d'ya think?
ReplyDeletehttp://www.screencast.com/users/jacksoo/folders/Jing/media/9fb46c58-2dbf-4b6d-a992-b3f2e633fa91
jacksoo,
ReplyDeleteI see what you are talking about. Here's my problem, H&S patterns are topping/bottoming patterns. The only top that you are talking about is the wave 4 top, which isn't a 'normal top'. Also, I think we go way below the projection of 740, based on the price patterns, which would also invalidate the H&S.
tkx for the feedback - what's your timeline for a bottoming of this drop - do you have a projected #? All the best.
ReplyDeleteI think the drop finishes off in 2-4 wks around the 550-650 area. But if the size of w1 is an indication of what is in store, then those should be quite doable targets.
ReplyDeleteI see a big triangle starting back around Jan 23 2009. Tomorrow should open with a thrust to the downside.
ReplyDeleteBob, I'm confused with your triangle comment. I'm looking at 1/23 and I see a higher high since that date. Did you mean a different start date or do you have chart I can look at?
ReplyDeletehttp://fibonacci-financial.blogspot.com/2009/02/big-triangle.html
ReplyDeleteThe link above will show you what I see.
My triangle got taken out this morning but shorts still look good as this could be wave c.
ReplyDeleteDoes that fit with your count?