UB,
On the SPX, an ending wedge connecting yesterday & today's highs, and connecting yesterday & today's lows. The wedge was made because an ending diagonal formed for wave 5 of C.
So from the 2/23 low, we had wave A into the 2/27 high, wave B into the 3/1 low, and C up from there.
1 of C into the 3/1 close, 2 of C was an expanded flat, and finished on the 3/5 midday low, 3 of C into the 3/6 am high, 4 of C into the 3/6 close, and 5 of C began from there.
1 of 5 of C into the 3/7 10:35 high, 2 of 5 of C into the 3/7 11:45 low, 3 of 5 of C into the today's 10:00am high, 4 of 5 of C into today's 11:10am low, and 5 of 5 of C into the 11:50am high. I shorted it shortly thereafter when the reversal confirmed. Now this is meticulous work and there may be a chance this read is off a notch, but it shouldn't cost more than a day if it is off, with no more than 1275 spx seen on the upside.
We've all been awaiting (Heinz & i think da Alien too)for this ABC upside correction to end off the 2/23 lows. This read makes me believe it IS over, and we have cycle confirmation on the Nasdaq that the next leg down is underway. This due to the fact that a significant cycle low landed yesterday, and that low has now been taken out on the Naz.. Not on the SPX/OEX/NYA/DOW as yet, but when they do full confirmation will be in place.
A nuclear detonation pattern also formed on the SPX yesterday. looking at the intraday chart, you'll see declining highs and a flat series of lows underneath, forming a descending triangle. The triangle was broken at around 3:45pm yesterday to the upside as these patterns nearly always do, targeting 1267.5 for the reversal area. We got close enough for clown work to begin the reversal, but we're still vulnerable to another attack of the double top in place on today's intraday chart. |
