Well... SP and Dow were once again repelled by the bullish trend line going back to March lows. Longer term bearish trend line is just above. Nasdaq has ways to go to 1680 to hit that bullish trend line. So... if these lines in the sand (Friday lows for SP and Dow, 1680 for Nasdaq) are taken out to the down side, I suggest some shorting. These markets may go back to test March lows then. If the bearish trend lines are broken to the upside, expect some fireworks to the upside before this thing rolls over.
The wave picture is unclear as well. One count says we are starting to roll over in wave (iii) of C, or X, which should take us to at least test March lows, the other one says we've just completed a triangle wave 4 of C, and will be going higher. Nasdaq looks like it has comleted 5 waves of C, though. Then again, maybe this bullish wave will have 5 waves up, not 3?
Then again, other weekly technicals, such as stochastics and sentiment, show that we have reached or exceeded previous levels at which this market turned down. Macdonald looks like it is rolling over. Put/call and trin were hinting Monday will be down. |
