Ewj: elliott wave

I loved Ending diagonal patterns ( SPX Daily)

Bears see that ED as finishing of the C of a expanded flat B wave.

The bulls will be looking at the ED as finishing of the a Wave 3 of the lows and were going in to wave IV, (I'm using daily bars).

 

Short position is closed when there is a higher high near measured move.

 

Thanks, Mup.

 

Don't blame me. Blame Baidu.com note.

NEW YORK (CNNMoney.com) -- Technology led a broader stock market selloff Thursday, with investors backing off after pushing the Dow and S&P 500 to record intra-day highs earlier in the session.

The Dow Jones industrial average (Charts) lost around 0.5 percent. Earlier, the Dow had risen more than 100 points and hit an all-time intra-day high of 14,198.02.

The S&P 500 (Charts) index fell 0.5 percent. The broad index briefly hit a record intra-day high of 1,576.09 before backing off.

The tech-heavy Nasdaq composite (Charts) lost 1.4 percent, erasing early gains that set it at a fresh 6-1/2 year high. (2834.00)
http://money.cnn.com/2007/10/11/markets/markets_0500/index.htm

 

What wave degree is yesterday corrective wave?
One day correction of 250, 29, 74 points.
It is impulsive 1-2-3-4-5-a-b-c-1-2-3-4-5-a-b-c.

Status:
EWMTer has just lost his positions.:eek:

Scenario 1.
Market opens down as 1-2-3-4-5
Strategy 1.
Short sell just after opening when there is a lower low. Set stop at the last high. Set target equal to the third wave.
-124.6192 -17.42 -41.3901
Cover short and enter long position when there is a buy signal near the target.

Scenario 2.
The corrective wave is completed. The last 1-2-3-4-5 wave is the beginning of a new bull move another 1000, 100, 200 points.
Strategy 2.
Buy back the long position when there is a higher high. Cut loss when there is a lower low. (Expect a 400,40,80 retracement, but just take what is at hand. )
Re-enter a long position in a falling Market is very difficult.

 

Long position re-entered where it was exit yesterday.
Prepare to cut loss if there is another lower low.

 

I do enjoy this thread

How about option 3 that yesterday was an A wave of one higher degree (hence the lesser a-b-c pattern into the MM breaking the lesser degree wave iv) and today is the B wave aiming for 50% to 61.8% target back up... 1561-1565 area (spx)

 

Prepare to short sell at yesterday wave c if there is a lower low.
Today up move may be a larger a-b-c. Set stop at the last high.

 

One more up wave, then short sell at a lower low.

 

Target reached. Open short position when there is a lower low.