Friday, April 26, 2024

BFW

The simplest way to count the hourly SPY chart is with a truncation (*) wave up just short of the former all-time-high, followed by a Bullish Falling Wedge (BFW) lower, followed by a channel count upward in the following manner.


The upward (c) wave does not have to be done, yet. It might spill over into Monday/Tuesday to try to reach 62% or greater. But, at present, it is in excess of a 50% retrace on the downward wave which is acceptable. 

First waves down tend to be real stinkers, but the alternation in this one is a long and deep wave (ii) flat, alternating with a short and shallow wave (iv) zigzag.

If the up count since the low is going to bear-flag, it should end in this area or else it would have to form a double-zigzag or a Flat to take more time. Overall, I am still looking for five, clear minute-degree waves down to make the Minor A wave.

In any event, have a good start to the evening and the weekend.

TraderJoe

29 comments:

  1. In USD/JPY, we are currently in a 3rd wave of an impulse up wave off the lows in Jan 2024.

    ReplyDelete
  2. TJ, I think this was discussed a few weeks back but I forgot. I know that no flats are allowed unless in the b wave position, but can any waves in a diagonal be ZZ's or ZZZ or only simple zig zags?

    ReplyDelete
    Replies
    1. Yes they can be. In fact, TJ illustrated a double ZZ for the intermediate degree wave 3 in his CED for primary degree wave 5.

      Delete
    2. Yes, in some formations a DZZ occurs in wave three or five of a diagonal. TJ.

      Delete
  3. Here is my dilemma on gold. It seems the cleanest would be we need one more attempt at a high.

    https://imgur.com/UmLMXW0

    but it does not seem enthusiastic about the idea.

    https://imgur.com/bmupT2s

    Looks like degree violation for a 1,2,i,ii down.

    ReplyDelete
    Replies
    1. So is this truncation the thing that is throwing me off and its not two corrective channels after all?

      https://imgur.com/KERIj3G

      Delete
    2. Some chart thoughts on GOLD are below using the two-channels outlined earlier. Just looks to me like wave 3 is not over as it is not 1.618, making this a minute fourth wave lower.

      https://www.tradingview.com/x/TZ4DnaUH/

      Notice where the RSI has been, and the gaps in 3.
      TJ

      Delete
  4. another possibility instead of truncation we had abc now a new leg up for a new high

    ReplyDelete
    Replies
    1. ..another possibility is that it is abc as you suggest, but to ⓘ of a diagonal, either contracting (most likely because of where the daily lower Bollinger Band is) or expanding (less likely). I have considered the abc possibility but there is no evidence for going over the high yet. TJ.

      Delete
  5. I might be late on this but here we go again?https://www.reuters.com/business/finance/us-regulators-set-seize-republic-first-bancorp-wsj-reports-2024-04-26/

    ReplyDelete
  6. Tip of the iceberg. The vast majority of their holdings are still not being marked to market. Bond losses are hundreds of billions for the big five.

    ReplyDelete
  7. Updated Gold corrective channel.

    https://imgur.com/8m20wYD

    ReplyDelete
  8. On the SPX, I can see that the rebound has stalled in the area of an overhead resistance confluence of the descending trendline (from 4 April) and the 61.8% retracement:
    https://www.tradingview.com/x/wZdwYmAv/

    ReplyDelete
  9. This sure feels like a die in the middle 5th wave of an expanding diagonal from your 4/25 post.

    ReplyDelete
  10. Equities & bonds: please note Treasury refunding statement due at 3 PM ET (top of the hour)

    Treasury Refunding Story

    TJ

    ReplyDelete
    Replies
    1. SPY 10-min: this might be a triangle waiting on the announcement.

      https://www.tradingview.com/x/KLnXVNAj/

      The opposite of the triangle would be a downward diagonal.
      TJ

      Delete
  11. Just of note, I am finding that in these expanding diagonals there is usually action around a center line.

    https://imgur.com/wAS19oE

    ReplyDelete
  12. SPY 10-min: using the Neely 0 - ii trend guideline might yield a count like this within (c).

    https://www.tradingview.com/x/jBITF9Sn/

    TJ

    ReplyDelete
    Replies
    1. potential triangle Invalidated downward on announcement ...

      Delete
    2. https://www.marketwatch.com/story/treasury-raises-its-second-quarter-borrowing-estimate-2f47feda?mod=mw_rss_topstories

      Delete
  13. SPY 10-min: either a failure out of a slightly smaller triangle on the announcement or a somewhat larger downward flat iv, with v, up, yet to come.

    https://www.tradingview.com/x/WRrOa3RN/

    Flexibility and patience needed for a while.
    TJ

    ReplyDelete
    Replies
    1. SPX - downward overlap of wave a:
      https://www.tradingview.com/x/A01W2y4g/

      Delete
    2. Last up wave of the day made enough progress to call it v (greater than 78%). But it could go further tomorrow, too.

      https://www.tradingview.com/x/CS62edvC/

      TJ

      Delete
  14. A new post is started for the next day.
    TJ

    ReplyDelete