That is a most convoluted way of looking at the market and the "application" of Elliott Wave ( if there is one ) is the most absurd that I have ever seen. From the October 2007 Highs, one can count 5 waves down into the March 2008 Low as applied under EWT, not 7. Wave 1 ended in late November before giving way to a Wave 2 bounce that concluded at the late December 1498.85 High on 12/26 before embarking upon Wave 3 to the downside. Wave 3 bottomed in mid-January, which then lead to a counter-trend A-B-C bounce in a Wave 4 that terminated at 1388.34 on Feb. 27th before the final Wave 5 to the downside into the March low.
A 'healthy market' should rebound very soon from here. Friday's CPI number could be the torpedo that sinks the ship.
Futs all over the place on the LEH and economic #'s. Backing off a bit now to reality, I think. posted todays <i>Focus Report</i> dealing with yesterday's selloff in our main thread here: http://www.elitetrader.com/vb/showthread.php?s=&threadid=125554 <b>Pabst</b>, nice letter you wanna trade copies for one day? PM me if I can get a copy from you. Any move below today's low should set up the target area of 1325ish
So far so good as market gapped up today and then proceeded to come under pressure right around 6/9 & 6/10 lows. The third and final installment on this whole leg lower series in our daily commentary is up at our main thread here: http://www.elitetrader.com/vb/showthread.php?s=&threadid=125554 We remain short SPY and would like to reassess at the 1325 target. A poorly received CPI tommorrow morning and its on. enjoy -shadow
Numbers were in line - but I can't say that, given the Fed's current stance on inflation - these are positive. Not at all. So if we do gap up, it won't hold long. I don't see anything in these numbers that points up from here. DH
lets see what happens........ yesterday was also a pop higher on economic data which faded fast by lunchtime and made new two day lows. Its never easy...... We've got a topping tail on yesterday's SPY which should not be violated if this scenario is to play out properly. If so, thats what stops are for.