ScalperJoe - It could be that case because the market stopped right above the 50% fib retracement. If that 50% area holds, we don't rule out the possibility of the wave [IV] scenario, which means that the market would come back to test 1400 area for a wave [V].
Yes, I agree with you! We are at the point where 50% fib retracement meets horizontal support area and up channel line. If this area is breached, it means a free fall.
I recall Paul Tudor Jones quoted as saying EW allows him to find setups with high reward to risk. He also said that Bob Prechter was one of his favorite analysts. :eek: Granted, this was in Market Wizards 1, from the early 90s.
I started studying R.P.'s publications since about the same time. After few years of reading, I found that his wave counts had lots of problems, so I threw them to trash can. I think that R.P. has a lot of contribution to modern EW, but he cannot break through some bottleneck.
From my blog: The market moved as expected today. Our audience got plenty of time to unload and go short in the morning. The market panicked down in the afternoon and set new day low. If the current preferred wave count is correct, wave 3._4 has ended today, which means that the rest of the week could have bloody slaughtering collapse. Again, this bear run is far from over! DO NOT buy into any dip!
From one other logic 135 is possible before any further breakdown. I am however not taking any longs right now.
(For more of my analyses and articles, please visit my blog. Thanks.) The up thrust in futures market overnight penetrated Tuesday's high, and hence my short term short position on index futures got kicked out with big win. The high in regular hours did not even touch Tuesday high. I did not enter a new short position on futures because of the coming long weekend. I'll continue shorting this market next week. The market has moved in a way that is identical to our prediction since 2 weeks ago (see the purple line wave count). With that said, there is no reason for us to change our preferred scenario at this moment. The downward wave has newly started today. Next week could be a killing bloody week for a wave-5. (This scenario will be voided if a long solid red surge occurs.) The bear run is far from over! DO NOT buy any dip!