Friday, April 15, 2016

Love Triangle

Those of you who follow the market closely know that our proposed triangle in the S&P500 and E-mini S&P futures worked out beautifully. Here is a four-hour chart of the S&P 500 cash index.

The only purpose of this chart is to show by actual measurement, that IF it turns out, we get a 5 = 1, then it does blow the lid off the market. 100% x 1 added to wave 4’s triangle (e) wave goes to 2160. I do NOT know if this will happen all in one fell swoop, the market may have another way of making it happen - like having an Intermediate (1) fall short of the high. But, I just wanted to provide the measurement. Further, this measurement uses the ‘lower’ of the two peaks, when the higher of the two peaks might be just as appropriate.


I need to emphasize, that nothing says we are going 'directly there', but we could by typical EW guidelines for the relationship between a fifth and first wave.

So, patience and flexibility remain the key - as do watching the status of various technical indicators for divergences and / or non-confirmations.

Cheers and enjoy the chart!

3 comments:

  1. Joe, would appreciate if you can elaborate on "the market may have another way of making it happen - like having an Intermediate (1) fall short of the high". Does this mean that it is possible that we will just fall short of 2150, or does it mean the subwaves will squiggle its way up to 2150, but will still be part of this large bullish wave (from Feb 15?)

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  2. Thanks for your prima education...love it each time

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