Spinky Baby,
How bout dat 3 of 3 of C rally!!?? Wuz U ready 4 it??!! I saw it but didn't play it cause I know where we're headin next. On the SPX & NYSE Off the July 19 top, this looks like an ending diagonal, with zig-zag wave 1 completing on 8/10, zig-zag 2 completing 8/25. Since then, we've been in zig-zag wave 3, with A of 3 completing on the lows of 8/31, and since 8/31 we've been in an expanded flat wave B. b of B fell from 1335 on 9/01 to 1305 on 9/02, or 30 points, and c of B has rallied from 1305 to 1363, or 58 pts.
What do we know about the maximum potential for c of B?? Can't be more than 2X the larger of a or b, in this case.. b. So 60 pts. is max, and it's already traveled 58. 1365 SPX should prove to be the lid on this rally, with a substantial sell off labeled Wave C of 3 to follow. The obvious reason will be the inflation numbers coming out soon, as a minor anamoly in new jobs created and wage gains does not turn the tide on inflation.
So are you ready to open wide and spew some contracts at 1363+ SPU9??
David Plunger |
