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!

4 comments:

  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.

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    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.

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  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.

    Purvez

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