Landis82 Registered: Jul 2006 Posts: 3905 New Post 10-29-08 01:44 PM Just retraced 78.6% down to 926 ES. Should stabilize and climb back up from here. Landis82, The .786% you refer to from ES low 914.25 to 954.75 high? If so I see .707% , How close is good enough for you? Thanks Trader
See, ST? You've shut your mouth for about 30 min now and the market is rallying. STAY AWAY UNTIL CLOSE!
Let me clarify . . . The correction of Wave 1 ( this morning's gap up ) was 38 points. ( ie. Wave 2 was 38 points ). After the late afternoon highs up around 954.75, the followers of EWT were looking for a Wave 4 pullback . . . We got that down to 926 after the FED announced its rate-cut and it so happened to be a fib ratio of 78.6 of the Wave 2 pullback of 38 points from this morning. From the end of Wave 4 at 926 ES, you could then project new highs for the day by using the length of Wave 1 from this morning, which was a little shy of 50 handles, targeting 973.75 on the ES. It's simply extensive use of fib ratio's and comparing legs ( waves ). I'm sorry if I wasn't that clear initially. Just not enough time to post. See chart below