keep up the good work mu! don't have much time to trade, but i'm watching this thread i'm waiting for a short entry before august with stop near 1124 trying to catch a wave (3) down
We have been following this correction since May 11, 2010, and keep looking for another lower low, it may be time to call if off. This correction is bigger than the previous two, namely Wave 2) and Wave 4), so it can be safely labeled as Wave 2]. Only one objection is "the rule of alteration" . When the last BULL turns bearish saying "unusually uncertain", the New Bull Market might have begun, target = SPX 1550. Next target SPX 1150, final show down between BULLs and BEARs. There may be no chance for the TRAPPED BEARs to get out even :eek: .
Mr.Market likes to confuse people and discredits expert :eek: . Today there may something like an Evening Star pattern . Tomorrow another buy signal . Then a fall to a lower low, just to bounce back to new high . A new "Rule of Alteration", between BULL Trap and BEAR Trap .
So we got our Evening Star . The red lines are for SELL Signals. The blue lines may be BULL or BEAR Trap.
The most confusing pattern would be a 5-waves UP, because it can be wave 1 for the BULLs or c for the BEARs alike. If the Market falls from 200-DMA after the Evening Star it will be a clear signal for the BEARs. So Mr.Market may choose a 5-waves UP.
Looks like a 5-waves DOWN. SPX 1107 may be a resistance. Long term investors are selling (200DMA) Mid term investors are buying (50DMA) Who will win?
Five waves DOWN, three waves UP. After the fifth wave of :c, there may be a 5-waves DOWN to 1065. $UTIL may lead the way DOWN. MACD is changing direction.
Fifth wave UP . So Mr.Market finally did what should have done . Be aware of the BULL and BEAR Traps. Red line for SELL Signals.
Oops! :eek: . Wednesday was the last high as expected . UTIL leads the way DOWN as MACD cuts trigger line. Equity Put/Call R20 = 880 which presaged 6 previous drops.