Thursday, October 6, 2016

Workin' My Way Back to You

Back towards the upper descending trend line again, that is. Yesterday, using the S&P 500 4-hr chart, below, we had said we had likely started a (b) wave down. That (b) wave continued today making a full and completed double-zigzag lower. Then, prices immediately reversed upward in what was counted as an acceptable five-wave sequence higher, and is likely wave 1 of (c), upward. Here is the updated four-hour chart.

SP500 4-hour chart - wave (b) likely completed today

So, price appears to be headed back towards the upper trend line of the still-potential triangle. While we have not entirely written off the leading diagonal A wave, up, yet, price would have to exceed the point labeled minute-c (circle-c) for that count to come back alive. That might be possible, but it depends a lot on the Payroll Employment report tomorrow. And judging by today's volume, a lot of people are just sitting on their hands and awaiting the outcome.

Not all that bad an idea!


  1. Thanks TJ! Since you think a large P5 ED may be under way and it certainly could be, have you thought about Minor A of Int 2 down is underway as an LD with waves 1 & 2 complete? wave 1 = 2194-2119 & wave 2 = 2119-2180. I think a decline is coming in the short term and where the bounce takes place should give us some more clarity IMO.

    1. Yes, I've thought about it, but as of the moment a pretty clear triangle is evident. That would be a B wave most likely with a C wave down to follow.

  2. Joe, please may I ask what that '0' is near the top of the chart around 22nd/23rd August?

    Thanks for your continued guidance.