Carl,
I'm open to the possibility that we're just now finishing the "A" wave of the correction, but it is definitely not my preferred read. Since I rely on S&P futures to determine my count, I spotted endings to waves during the overnight session on Tuesday and Wednesday night that probably don't get factored into your count.
Fortunately, we both have the same general area targeted for this immediate move lower, which is the 1130's on the cash. So you can count on the fact that I'll be loading back up there, as I'm sure you will too. (I was doing a little nibbling at the close on some beaten up blue chip financials, as I believe they will lead the charge in the next wave higher, along with blue chip techs and other growth stocks... cyclicals appear to have limited upside (airlines, retailers, etc.).
What I am counting as wave B of this correction, which I believe ended during globex early this morning, gives a pattern projection down to the 1142 area on the Sept. S&P futures(or 1135 on the SPX cash). So I will begin some heavier buying when we reach that area, or Monday morning, whichever comes first.
I expect the futures to open slightly down tomorrow, say around 1146, then trade in a narrow range between 1141 and 1152, but closing around 1146. This combined with today's action will create a "morning star" candlestick pattern, provided we see a strong follow through to the upside on Monday.
Whether your count is right or mine is, tomorrow should prove to be a good day to buy.
Regards,
David |
