David,
<<When will you decide that the dip to 1205-1274 isn't going to happen>>
You ask that as if it's a foregone conclusion <g>.
Actually, what would convince me that we've already finished this correction from the 4/13 highs (which thus far only made it to 1285, short of the required 1274 mark)would be if the NYSE clears 657 by even one tick, or the Dow clears 11195 by one tick. If either of those happens, then the market pulled a fast one (highly unlikely but in the realm of possibility) by only retracing 18% of the move from 923 to 1362, while 20% is the wave 2 minimum required retracement. The number on the SPX that kills the scenario would be 1445, but who could wait for that? I would have to go net long on a double close above 1380SPX, as that is a reversal zone target from the breakout of the symmetrical triangle we formed over the past few weeks, as seen here.
homestead.com
If tomorrow (Friday's) high is broken at anytime going forward, I would also have to get net long, as a 26 day cycle high is due on Fri, recommending a sell of the high of the day.
Regards,
David |
