MARKETS Well we are at a cross roads yet again, and the NAZ100 is showing signs it might do a big upward correction. A gap down, and today a gap up, that is bullish, almost an island reversal, and the stochastic turning up from over sold.
So what are we looking for. Well we have the DOW doing a great ABC counter rally and it stopped right at a S/R level, namely 11,067 also a 2/3 retrace, so all in place to proceed with (iii) of 3 of primary 3 down and if so look out below, those lows will be taken out in a flash and we go into power slide.
BUT WAIT we have positive end month seasonals coming into effect soon, like Thursday, and then we have the NAZ100 looking like it wants to kick butt on the upside. And this was a rather strong move for the DOW which usually indicates a follow thru expected EXCEPT the last two times turned into one day wonders.
And there you have it, if this is another one day wonder for the DOW then very bearish, BUT if we hang around these levels for a day or 2 or work higher above 11,067 then look to 11,137 and maybe even a pook to 11,200 area. Then look to next week for the (iii).
The S@P did not confirm the DOW moving above last week high, so watch tomorrow if it is going to confirm or not, a strong open and markets should rally for a couple more days.
So we are once again at a cross roads, all in place for the upward correction to be complete, however signs and timing that there may be more.
So wave (iii) or 3 of primary 3 may start tomorrow, or we may do a more extensive correction upward and go into (iii) down next week.....
Levels to watch for confirm wave (iii) is in effect.
Yep you guessed it, good old DOW = 10,955 that gives and odds are we are in wave (iii) down, a move below 10,838 confirms it, you see the DOW under 10,838 run for cover as it is gonna get really bloody fast.....
For S@P watch 1245 as intial warning, below 1238 and we are power (iii) down.
The NAZ, expect this to go with the markets, if S@P and DOW open strong the NAZ100 should rally hard, if they are weak and head down the strong upward correction the NAZ seems to be wanting to do should be aborted in a flash and the NAZ breaks down as markets break down.
So Moominoid we may get the 2 more days up you are looking for. |
