Good morning, POKERSAM. What is your reaction to McHugh's latest wave analysis? TIA. Two
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This supports our pattern labeling that wave C-up of (B) up has further to rise. It looks to us as if the final wave C-up for this Bear Market rally that started back in March 2009 is forming a Rising Bearish Wedge.
If a Rising Wedge is occurring, each of the five component waves should be three wave moves. So far we can label three waves for the first two component waves, (A) up and (B) down. The rally from the September 2nd bottom is likely wave a-up of (C ) up of C-up. That means a mild correction could start soon and last for a few days, wave b-down of (C ) up. Wave (E) up of C-up will eventually finish (B) up. The 30 and 60 minute Full Stochastics suggest an overbought market exists very short-term, while the 15 minute FS gives indecisive guidance, meaning markets are vulnerable to a short-term decline.
If this Rising Wedge pattern is in fact happening, that is a great gift from the market, as Rising Wedges are termination patterns, and highly reliable, so this would be great guidance for when (B) up ends and catastrophic (C ) down starts. We will monitor this pattern closely as it further develops. The late September phi mate turn date could be very meaningful, and mark a major turn point. There is an associated Fibonacci Cluster turn window with several (7) prior tops or bottoms a Fibonacci number of trading days from this window, with many of those prior turns major turns.
