| | | Hi Poker.... Thanks!! Going to plan so far.... and don't forget the exact target of 2506.02 was given here... Message 29813508 or mssg 19164. Some services show the high at 2506.04... and that .02 difference I attribute to my laziness of using the conventionally recognized golden mean of .618 in the calculations and not the actual .61803398875. :)
My long term wave count has us in a Grand SuperCycle (GSC) Wave 5 beginning from the March '09 lows. With the enormity of the structure of this Wave 5, I have expected it to unfold in an ending diagonal since the day it began... (and yes, I did turn bullish on bottom day in Mar 09 at 666 SPX, and loaded up on calls that very day). So I've been plotting wave 1 of this 5th GSC Wave since then, which in an ending diagonal is an ABC or 3 legged wave. Wave A ended 7/7/11 at 1356.48, Wave B was an expanded flat, ending on 11/16/12 at 1343.34, and Wave C ending yesterday at 2056.04. The completion of this 5.5+ year ABC also completes Wave 1 of the Grand SuperCycle Ending Diagonal Wave 5.
Wave 2 Corrective action in an ending diagonal typically unfolds in a Zig-Zag ABC, which typically retraces 50% of Wave 1. Wave 1's length from 666 to 2056 measures 1390 SPX points, so a 50% correction of Wave 1 results in a 695 SPX point move down from the peak, targeting 1361 SPX. Considering Wave 1 took over 5.5 years to complete, Wave 2 could easily take a couple years to unfold.
The rally we've seen since the 2040 spx level was met is not a surprise, and gives everyone a 2nd crack at premium pricing for long exits and short entries. The window for higher highs as related to the diamond pattern closed at 11:15am EST this morning.... so now we're just observing a big whale in a big barrel at these levels... Hungry bears should be grabbing with both claws!! :)
Good luck and best wishes to everybody in capitalizing on this turn!! |
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