Tuesday, July 16, 2019

Three Waves Down

From the weekend video, we said sudden set-backs could be expected at any time. Today resulted in only three waves down.

SPY - 15 Min - Three Waves Down

Yesterday, we counted out a potential diagonal lower in real time. Today, that diagonal was confirmed as a leading diagonal. Absent more information we have three waves down from the high, down to a c = 1.618 x a, and then an upward overlap.

As a result more information is still needed. If it's a complete correction it seems very short in time. Three waves could also go on to form a triangle or a diagonal. As a result more waves are needed for the market to show us what it might have in mind.

Have a good evening.
TraderJoe

20 comments:

  1. Oh good!
    I thought when you said we had a new low in ES you were implying an impulse down as I also counted only three waves....Whew! :)

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    1. No. That new low in the micro ES appeared to be part of a third wave yet.

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  2. New lower low on SP500 cash this morning probably still c / iii.

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  3. As best I can tell, still in five of (likely) iii to 2.618.

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  4. A 2.618 wave from the truncation high (*), as previously posted.

    https://invst.ly/bakcp

    TJ

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    1. ES ..there's the new low, and now under the identified fourth wave on the wave up.

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    2. i.e. now under ((4)) circle-4 on this chart.

      https://invst.ly/b9lrv

      TJ

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    3. TJ, looking at your 30 minuts chart of ES, is there any reason why the move from a-b of 4 (non over lapping flat) can't be a diagonal to complete the 5 waves at 3003?

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    4. @KS .. none that I can see, I was just working on a few degree labeling issues that might support that case.

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    5. @TJ, does this not work? check link - https://imgur.com/uMsJK7Y

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    6. @KS absolutely not..because green ii, which you are claiming is smaller degree, is LARGER than 2, which that chart claims is of larger degree.

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    7. @KS .. also see next day's post.

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  5. 5 waves down are either impulsive bear moves, or bullish wave Cs that soon leads to a resumption of the rally. Which is this?

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    Replies
    1. There should be a good 62% - 78% retrace within the next couple of days, and then the market will tell us.

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  6. A new post has been started for the next day.

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