Whether or not the corrective move off of this week's low is over or not will be played out by the market. However, we have met all of my price and time targets for this wave 2/b. You can see from my chart that price was rejected nicely off of the key resistance zone. While the rejection appears to have an impulsive look to it at this point, it will be the follow through that proves the pattern correct.
If indeed, wave 3/c is going to get going on Monday, then I'm looking for a gap down below SPX 911 to really move price to the downside. If, instead, we open the day anywhere near Friday's close or higher, then the odds are in favor of the daily low not reaching below SPX 910. Any continued upside on Monday should be contained by SPX 932.
With a continuation to the downside on Monday, then my immediate price target for this week will be SPX 875, at a minimum, and a bigger target of SPX 850. The next wave down will be our biggest clue if this is the start of primary wave 3 or just a major wave B correction within primary wave 2.
Have a great weekend!
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ReplyDeleteDoes it concern you that everyone is thinking the same thing? Thank goodness Jim Cramer is still a Bull.
ReplyDeleteBob, I'm not sure what you mean by 'everyone thinking the same thing'. Do you mean downside on Monday or that we may have started primary wave 2? Since I'm not convinced we've started primary wave 2, I obviously don't fall in that camp. As for going down on Monday, I only try and forecast what the charts have outlined.
ReplyDeleteI'm talking about more than the next two days.
ReplyDeleteI'm saying the news sounds less optimistic and it seems to me that in general most people are bearish.
Certainly most Elliotticians are bearish, but maybe that seems like everyone to me since that's what I pay attention to.
Rich, Do you believe in Golden Cross? Usually Golden crosses result in a bull market. A Golden cross on SPX might happen on Monday or Tuesday. What do you think about that?
ReplyDeleteTicker, a golden cross is certainly something to consider. However, the slope of the 200 DMA is very important to the strength of the signal. The current slope is still DOWN making a golden cross in the other direction highly likely. We had many false bearish golden crosses during the last leg of the bull market, and so just likely any indicator, it has its flaws. I'm a big believer that price, volume, and trendlines are the best indicators for the future.
ReplyDeleteI’ve thought about what I said the other day, and I see what you mean. I did not put enough thought into that question. So the news is growing pessimistic and every body is looking for a bear market. Now wave b comes along and shakes the money tree just before we finish wave c. Man that is cruel.
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