Over the weekend we cautioned several times that there could be a larger (iv)th wave in play. Prices moved higher on Monday. Over-night there was a substantial rally as the Asian markets and Europe got a chance to react. The up move to 1.618 says the chart should be viewed with odds slightly in favor of a third wave rather than a c wave.
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| ES Futures - 45 Min - A 1.618 Wave |
Now might be an excellent time to pay attention to the local up fractal, at iii, and the overnight down fractal that tagged the EMA-34. Wave iv did already tag 38% x wave iii. If it hits the lower channel in a zigzag it would be a 50% retrace. Nothing prevents it from forming a larger-in-time triangle.
Have an excellent remainder of the day and week.
TraderJoe
Amazing to see how much money is exiting this market on this move up.
ReplyDeleteHard to believe this exit being covered by retail buyers. Never seen anything quite like it...!
Just curious: how do you see money exiting the market? By what method?
DeleteYes I am interested as well
DeleteYou need a Bloomberg terminal to track index money flows. The next best way is to simply look at the on balance volume indicator.
DeleteUsing that method, NYA certainly looks like it; the other major indices less so. Thank you for the explanation.
DeleteWelcome. Wait till the close to assess OBV.
DeleteWould you mine providing a chart of what the OBV is showing you.
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