Ratan,
After careful review of the charts, I believe RWS' tentativeness about Wave 2 being complete is well founded. New tools I've recently added that help in identifying wave completions leads me to believe we're still in the B (down) part of Wave 2 (up) of this Overall Large C Wave (down). It appears as though we completed "a" (down wave) of B around 3:05pm Tuesday, and are in "b" (up) of B currently. I expect this "b" (up) wave to complete tomorrow between 10:30 & 11:00am, with S&P futures prices in the 1093 to 1097 area.
Afterwards, the market should head down in a very tradeable "c"(down) of B wave, that probably won't complete until just after the open Thursday, and could find itself ending in the 1065 area on the June S&P. Afterwards, C of 2 (Up) would have a 2.5 hour window to complete itself, and could very well rally 8 to 10 S&P points or more. This would point to Thursday just after noon as the last big short position establishing opportunity before things get out of hand.
So I will be looking to add to shorts between 10:30am & 11:00am tomorrow in the 1095 area, and will hold short positions overnight after Wednesday's close as long as the June S&P hasn't already visited south of 1070 before the close, with intentions of covering Thursday morning after the ECI report, and reestablishing later Thursday.
Regards
David |
