Here is the daily chart of the ES Futures. One of the benefits of following a wave count closely is that clear invalidation points can be expressed.
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| ES Futures - Daily - Five Waves Higher |
In this case there are two of them: First, in a diagonal wave 5 may not become longer in price than wave 3, and second, at no time may minute waves ((b)) or ((c)) of wave 5 travel below wave Minor 4 at the 3,200 level. So far, so good.
Today, the NASDAQ 100 sold off a little, and may still be in a fourth wave configuration as the losses were relatively small. The DOW cash index has not made a new recovery high, yet. We're still waiting to see if that happens or not.
As shown in the chart, below, yesterday, the VIX tagged the lower daily Bollinger Band, but did not make a lower low, today.
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| VIX Cash - Daily - Tag of Lower Band |
It will be interesting to see if this divergence persists if the cash S&P500 makes a new high.
Have a very good start to your evening and to your weekend.
TraderJoe
Casino opens 9:30am sharp Monday, you deserve a break :) Have a great weekend Joe
ReplyDeleteI was able to count five waves on each ((a)) without violating the definition of degree. It may be that the issue of degree is of too little importance in your schema.
ReplyDeleteYou can not convince him. When we talk about degree violations proper size and length of the waves how come w1 be 12 weeks and w4 1 week? This is not serious. Why there is no other index with this pattern?
ReplyDeleteThere is no such thing like SP500 makes one pattern all the other indices something else.
Tj-
ReplyDeleteThanks for yesterday's reply on comparison charts. This raised a couple of questions.
https://imgur.com/aziFoEv
Thanks again.
I have tried to address this and other situations in a reasonable alternate in the next blog post already published.
DeleteThanks!
DeleteA new post is published for the next day.
ReplyDeleteI have tried to address a reasonable alternate in the next blog post already published.
ReplyDelete