| Followers | 680 |
| Posts | 141192 |
| Boards Moderated | 36 |
| Alias Born | 03/10/2004 |
Thursday, September 20, 2012 6:27:43 PM
For those who follow Elliott Wave analysis:
One Rally Left?
* Thursday, September 20, 2012
The market's downside seems more impulsive than the upside of late. This has to clearly make us more cautious regarding further upside, especially since we have not seen downside wave action like this in quite some time.
As it stands now, the market left us with a very bearish possible i-ii, 1-2, (1)-(2) set up. This means that if the market breaks down from here, it is going to drop in the heart of a 3rd wave down, which is the most powerful portion of a bearish count. It would mean a drop to a minimum of 1440ES and potentially even lower will be seen tomorrow.
However, as long as the market can ideally hold the 1448ES level, then we may still view today’s low as the bottom of wave iv, and one more rally to at least a double top of 1468ES should still be in the cards, with the potential to move up to the 1475ES region. However, it MUST move through the 1459ES level to invalidate any current bearish count that is before us in the charts. As long as we remain below that level, the downside set up is quite dangerous, as it can project all the way down to the 1400 region quite quickly.
See chart illustrating the wave count on the Emini S&P 500.
http://www.decisionpoint.com/TAC/GILBURT.html
George.
Click on "In reply to", for Authors past commentaries.
One Rally Left?
* Thursday, September 20, 2012
The market's downside seems more impulsive than the upside of late. This has to clearly make us more cautious regarding further upside, especially since we have not seen downside wave action like this in quite some time.
As it stands now, the market left us with a very bearish possible i-ii, 1-2, (1)-(2) set up. This means that if the market breaks down from here, it is going to drop in the heart of a 3rd wave down, which is the most powerful portion of a bearish count. It would mean a drop to a minimum of 1440ES and potentially even lower will be seen tomorrow.
However, as long as the market can ideally hold the 1448ES level, then we may still view today’s low as the bottom of wave iv, and one more rally to at least a double top of 1468ES should still be in the cards, with the potential to move up to the 1475ES region. However, it MUST move through the 1459ES level to invalidate any current bearish count that is before us in the charts. As long as we remain below that level, the downside set up is quite dangerous, as it can project all the way down to the 1400 region quite quickly.
See chart illustrating the wave count on the Emini S&P 500.
http://www.decisionpoint.com/TAC/GILBURT.html
George.
Click on "In reply to", for Authors past commentaries.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
