Short Term Trading Member Forum

[techcharter]

SPX E-Wave count

I'm looking at large ending diagonals in the SPX and INDU that started from the October 2013 lows, and are now in smaller degree Wave 5. The smaller degree Wave 5 could be breaking down into an ending diagonal as well, in which case it has started little wave 5. The second ending diagonal in the SPX looks like it will not break the 1900 level; therefore, truncation is possible.

The reversal from multiple degrees of ending diagonals and a truncation should be a sharp drop. I expect the turn sooner that later based on time proportionality of Waves 1 and 3. While I've traded the last 6 weeks well, I'm playing it safe this week since it is so close to a major reversal. I want to be ready to catch that sharp drop and make some money!!