Hi 9999 To answer your question...yes, but usually only near the end of intermediate term moves. During an advance or decline I use what I call EW pivot points, they seem to work a lot better. They are simply levels, where the index runs into support or resistance, depending upon it's trend. For example: The SPX during the correction, AND this advance has certain levels it must overcome: 1246 1234 1221 1212 1200 1191 1184 1174 Check a bar chart and you'll see what I mean. Today the SPX finally surpassed 1212; 1200 should act as support and 1221 is next resistance. good trading!
Hi Tony, Just want to clarify, are the EW pivots based on previous support and resistance or are the calculations proprietary? Thanks.
I assume there won't be any level when the price advances beyond all time high? Is that correct? Or are there other projections? Thanks.
With all time new highs, fibonacci ratio's work well We may need that for the DOW But for the SPX and NAZ EW pivots already exist The NAZ hit a point shy of 2165 this morning, and retreated, trying it again now...it's amazing how thse psychological levels work
With today's close in the Nasdaq at 2160.22, we now have confirmation of a new uptrend in the markets. The leader naturally had to be first ! The SPX and DOW should follow shortly. What does this mean? Over the next few months the NAZ will reach a minimum of 2356 (wave iii = wave i), or 2560 most probably (wave iii = 1.618 x wave i). See chart : Good trading
More good news! With the DOW closing above 10,536 today, it closed at 10,586, this index has joined the NAZ and the NDX in new confirmed uptrends: objective EW analysis. We are only waiting on the SPX now, which needs a close above 1227. http://spaces.msn.com/members/caldaroEW/
A close on this coming Friday > 1236.80 will lead to a test of the old highs at 1245.86 SPX. Assuming that a Wave III is at work here, one can target 1434 as the minimum target over the next 6-9 months, which is essentially a 15% rise. A close above 1254 on a weekly basis will confirm this longer term target.
Hey Mike, I like your chart, and I'm glad we're on the same wavelength Friday, 1236.80, that's do-able, only 1234 in the way once we confirm with 1227. Yes agree, 1246 would be next! Six to nine month target of 1434. Hey I buy it all I have fibonacci projections of: 1280 - 1346 by Jan/Feb. '06 1280: wave iii = wave i 1346: wave iii = 1.618 wave i Nice post! tony
That having been said, I do believe that we are getting awfully close to the end of the first wave up in this Wave (3). Don't you agree?