Short Term Trading Member Forum

[techcharter]

Continuation Alright. E-wave comments

The chart Bliss posted shows a triangle. E-wave theory indicates traiangles are the last correction of the larger degree, AND post triangle market behavior is ususally a thrust to the beginning of the triangle wave a. Today's pop certainly meets both those criteria.

If you zoom in to the apex of Bliss' chart you will see after wave e on Tuesday morning there was an advance followed by a pullback. The pullback (ending at yesterday's close) is also a triangle, which means today's pop should have very little follow-thru, and odd are high that the multimonth rally is over. A multi week correction is about to begin.

http://bigcharts.marketwatch.com/advchart/frames/frames.asp?symb=spx&time=&freq=