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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (62159)	11/10/2000 10:40:11 AM
From: Les H	Respond to of 99985

Complex top (aka complex H&S) traders.com

To: bobby beara who wrote (62159)	11/11/2000 11:12:00 PM
From: Death Sphincter	Read Replies (2) \| Respond to of 99985

bob-o-matic....there is nothing WRONG with those charts. I try to put waves of this magnitude into context with a bigger picture. Occasionally a nice pretty wave picture sets up; like a nice classic 5er with alternating 2 and 4 waves and nice Fibs, but you know MOST the time this doesn't happen....and then your looking at the general form and a confirmation with other TA patterns, indicators, etc.etc. on those occasions when a really textbook looking wave is forming you just got to sit up and take notice and anticipate that it will run true to textbook 'look' thruout its course. in the case of the SP and NYSE I believe they are running very classic Ending Diagonals. Now Ending Diagonals have a unique 'rising wedge' looking pattern. From my observations I have seen some outstanding EDs of much smaller magnitude. The signature of the REALLY picture perfect is as follows: All 5 waves are ABCs(3 legged moves) 1 up is noticeably the longest and is ABC 2 down is ABC and terminates around the end of the B of 1 3 is an ABC and is shorter than 1 4 is ABC and terminates near the bottom of B of 3 so now your wedge is forming with a rising 1-4 bottom trendline and a flatter top trendline. The top trendline is important because in the REALLY perfect, ideally forming ED, you can anticipate a throwover, a hard spike up thru this line with the C wave of 5 up. This 5th wave, ABC, must be shorter than 3, thus giving you an upside max target. Now this is an ED in a perfect world, and most get garbled, but the SP has been following the above roadmap for over a year to a "T", and I just HAVE TO CONTINUE FOLLOWING IT. below is a chart of SP on a bigger look, more to follow, haven't mastered this website so you may have to scroll the page badsmells.homestead.com

To: bobby beara who wrote (62159)	11/11/2000 11:33:37 PM
From: Death Sphincter	Respond to of 99985

here is the SP Ending Diagonal. If I had drawn the top trendline thru the peak of March high the wedge looked bad. And it made it difficult for me to believe 5 would make it to that trendline given its limitation of about 300 points. As this 3rd wave was playing out I was watching the NYSE 3rd playing out. The NYSE went to alltime high in Sept on a recovery from May low,I decided that it was the C wave of 3 for NYSE and the corresponding move on SP was a FAILED C wave for its 3rd, BOTH C waves were EDs in and of themselves. Ya follow me? I suppose it is artistic license. however, it makes sense with both NYSE and SP cause it looks 'right' for the wedgie and allows both to have a max length wave 5 that can 'spike' the top trendline badsmells.homestead.com