With the channel broken pre-US market on Friday, the market did indeed rally to test the 850 level as expected. On relatively light traffic, the market pushed to new rally highs. With the new high comes a new structure, which I show above.
At this points we have all the signs of a solid ED: ending wave of a larger tructure, occurs when the market has moved too far too fast, choppy waves. Our wave 5 could have ended Friday, but to make it a textbook perfect ED, I would like to see one more slight down move with one more up move that breaches the top line (even if briefly).
Once this is over, I would anticipate a very sharp selloff taking us to the 780 level for a wave 'a' of b. Once we get there, I'll analyze the wave structure to see what it is telling us about the possible future paths.
On a side note, I hope everyone was able to enjoy the Easter holiday. Of all the holidays (for Christians) this is the most important one as it is the resurrection of our Lord and Savior Jesus Christ. I enjoyed reflecting on this miracle and the impact it has on the human family!
Best to your trading.
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Hey Rich,
ReplyDeleteThanks for your continued work. I enjoy reading your blog just about every day. You're doing some really nice work. And thanks for the encouraging words regarding our Savior. I hope you had a wonderful Easter. It's an unspeakable joy to know that our King Jesus willingly died in our place to bring us to Himself, and that He rules and reigns over all.
Your brother in the risen Savior,
Jeff