Replies to post #35336 on ajtj99's Market Pulse

[ajtj99]

Justa, I agree.

[Culmus]

NDX: Intraday

With yesterdays losses the NDX got closer to the minimum target of 1420. Price patterns to the daily low were impulsive so that starting from the top of the last weeks a complete impulse wave can be counted.

Concerning the bigger count the problem persists that the pattern of last week cannot be integrated into a wave b when sticking to the rules. Still, the count of a wave c since 1478 is the only reasonable working count at present. The count and the prognosis remain questionable until the wave patterns either confirm or deny it.

Yesterdays low already fulfills all requirements for a five wave down and a complete wave c. The possibility of an extension remains as the retracement at 23.6% was not exceeded.

Only the very short term patterns give hints. As these were corrective from yesterdays low a time extension of yesterdays correction is probable. Assuming a flat correction the NDX should fall in early trading to 1428 and end the sideways correction with a subwave c' around 1440. A higher resistance is at 1447.

If the price patterns continue to be corrective - which appears likely at present - there should come further losses in the second half of trading. At disposition is still the support at 1420.

Conclusion:

The patterns continue to be difficult to count. But there is an advantage to the scenario that has the NDX going first sideways then further down (1420).

[Justa Werkenstiff]

Market: The set-up as described this morning seem sot be in play with the NDX and NAZ catching up to the downside. With respect to a potential bottom, be advised that the shorter term moving averages on the total put/call are NOT bullish as they continue to fall with the decline.

[Math Junkie]

Justa,

The Candlestick glossary I have access to doesn't describe the rescue stick. Can you elaborate on how you recognize one and what its implications are?

RP

[Justa Werkenstiff]

Market: Using SPX as a proxy, it rallied a bit more than I expected and looked strong into the close breaking the 10 dma and upper trendline with a jam job that lifted the Naz and Ndx in the final minutes. It sure looks bullish on the SPX!

On the daily, SPX trading indicator is through the roof. This generally means sideways at least or down today. I can't quatify it. So we will see how that plays out today knowing we might be in a pre-election bounce mode which is too hard to quantify. Longer term, this bounce takes place within the confines of three weekly crow-like candles and so a longer term reversal here is unlikely. It is also unlikely in the context of the Dow which has three perfect weekly crows. A bounce here is to be exepected though I certainly did not get a good signal which makes me skeptical of it for sure. The Dow bounce is unremarkable. The SPX bounce is stronger. Regardless, the put/call ratio on the shorter term moving averages is moving toward extreme readings (too much bullishness) and certainly does not support a big move up here. Instead, the put/call situation is rapdily starting to resemble that of the end of July which ultimately lead to more down.