Wednesday, May 2, 2018

Whip and Froth Continue

Market Outlook: Now Getting Higher Volatility  
Market Indexes: Major U.S. Equity Indexes closed lower; RUT higher  
SPX Candle: Higher High, Higher Low, Lower Close -  Bearish Engulfing Candle  
FED Posture: Quantitative Tightening (QT)

Yesterday we wrote, "None-the-less, do not be surprised by a 38% or greater pull-back beginning tomorrow or the next day." That pull-back occurred today, after a visit to slightly higher highs. But, now there is a potential problem. 

Looking at the ES E-mini S&P500 Futures below, one can see that the count is at high risk of invalidation.

ES E-mini S&P500 Futures - 30 Minutes - Flat or more of (b)?

The futures closed at 2,627. And the prior low is 2,623.25. Since a wave 2 may not go below its wave 1, then even one tick below 2,623.25 - even in the overnight - would invalidate the wave 1, up count of minuet (c) of the minute ((d)) wave of the larger daily triangle.

If it, the 1, 2 count, does invalidate, then one might surmise that the (b) wave is continuing with a further sub-division as we said was certainly possible at least until there is any further evidence upon which to base a count. If the 1,2 count survives, then the structure is a common flat wave. In the cash market, the S&P500 did stop at the 78.6% retracement level on wave 1, even if temporarily. Let's see how it goes.

Have a good start to your evening.

1 comment:

  1. Are you really something wild and curvy in your life, then spending time with one of our sexy Lahore Escorts who will give you some memorable moments and sleepless nights. At Sexy Lady, we think that all the man has an equal right to have something exciting and pleasureful in their life. It can only be possible if you have a sexy girl by your side who can soothe your senses and gives you proper pleasure. Our Islamabad Escorts girls are created by God to offer a range of services that you can even imagine in your life. The people around the world come to Lahore and contact our agency to enjoy an amazing time in the city. We are here to serve you the best services that no one has ever thought.