Tuesday Update

Today’s action was enough to confirm the short signals for Energy, Gold and Financials, and to create Alerts for the SPX, DOW and QQQ.  The SPX, DOW and QQQ short trades will be confirmed with intra-day lows that take out today’s lows.

My gut says tomorrow will be green, possibly after a slightly lower low around 1332-4.  As I noted a few days ago, the NYMO needed to blow off some steam before it could go any higher.  True to form it has and has taken out the upward trend line off its higher lows and setting up a buy alert on its next turn up.  This didn’t happen today, but could tomorrow or the next day.  Today, the NYMO closed outside one of the barriers I track for it, and it’s close to closing outside its BB (the middle NYMO on the chart below).The wave counts are shown below.  The two bullish counts are shown on the 30 min chart: the ultra bullish 1,2,i,ii count (blue labels) and the leading diagonal (purple labels).  Under the former blue count, a big move up is imminent once wave (ii) concludes (target again 1332ish).  Under the leading diagonal, the SPX should trace out an abc up to the upper purple dashed trend line perhaps a bit higher, then quickly and violently retrace 78.6% of this entire move up from 1266 in wave (2).  The bearish count is on the daily Renko, and wave (3) is underway and should violently sell off soon.  I’m starting to like the leading diagonal more and more.  The daily renko seems too bearish for the 1,2,i,ii bullish count. 

About alphahorn

I received an MBA from Columbia University’s Graduate School of Business in New York and am a Wall Street veteran. I’ve worked for a number of investment banks including Smith Barney and First Boston/C S First Boston in New York. Over the years, I have developed my own Proprietary Swing System and I combine that System with my own Elliott Wave Analysis to trade.
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