Hello all,
How curious that I now spend my free time looking at charts :) Since going down 18% from its 2018 peak there are signs of a recovery. Either we are somewhere in wave B of and ABC corrective rally or the correction is complete and the index has formed wave 1 and is forming wave 2 over the next couple of weeks. Caution, as wave 2 tends towards a deeper correction - so we may see something around the 0.5 fib retracement or more.
If it is an ABC, then this may be followed by another corrective sequence to make a double zig-zag (WXY) or a triple zig-zag or combination (WXYXZ), or by a new impulse move up.
If the wave down ends up forming a triangle then that reduces the probability that it a wave 2 and increases the chances that it is a B wave - as leading diagonals / wave 2 triangles are less common than in the B wave.
Happy trading - keep an eye on those stops. This is published solely for my own education and to make it easier to monitor the market at key turning points.
How curious that I now spend my free time looking at charts :) Since going down 18% from its 2018 peak there are signs of a recovery. Either we are somewhere in wave B of and ABC corrective rally or the correction is complete and the index has formed wave 1 and is forming wave 2 over the next couple of weeks. Caution, as wave 2 tends towards a deeper correction - so we may see something around the 0.5 fib retracement or more.
If it is an ABC, then this may be followed by another corrective sequence to make a double zig-zag (WXY) or a triple zig-zag or combination (WXYXZ), or by a new impulse move up.
If the wave down ends up forming a triangle then that reduces the probability that it a wave 2 and increases the chances that it is a B wave - as leading diagonals / wave 2 triangles are less common than in the B wave.
Happy trading - keep an eye on those stops. This is published solely for my own education and to make it easier to monitor the market at key turning points.