Short Term Trading Member Forum

[techcharter]

Chuck UPRO

I'm definitely seeing the large ending diagonal pattern playing out in the RUT and NYA. SPX and INDU are excellent candidates as well. The big picture has not changed since today's close. The debate is has Wave 4 of the ED from the October 2014 lows finished? The open market shows an overlapping advance off Wednesday's close. Is it triangle wave b of Wave 4 zigzag, or a very truncated Wave 5 ending diagonal of the larger ending diagonal?

Breaking below 2006 in the SPX (17222 in the INDU) without a serious challenge of the all-time highs would favor the truncated Wave 5 ED, and signal a new bear market. Breaking 1972 would eliminate the bull market count.

long term momentum has definitely decreased the past 6 months. A long term top is definitely forming. Things are definitely getting choppy as happens at major turns. Daily data is too coarse for the signal processing needed to navigate this type of market. I wouldn't play for the table scraps at this time. Wait for a better set up.


http://www.barchart.com/interactive_charts/stocks/$SPX