Context
Uptrend, nothing broken. And even we reached the CL, we have a good chance that the energy point will activete the reaction at the CL of the reaction line (black dashed).
Price Action
natural Pulback (see orange sine wave)
energy point, consisting of the L-MLH (Lower Medianline Parallel), and the A/R (Action/Reaction) set.
A more conservative approch...
SP 500 could be in for a rough ride next few weeks as events collide to force a tidal wave of selling to finally occur. Expect a market drop as severe as we witnessed OCT 2014. This time I predict we will not bounce back as furiously as we have in the past. That would signal that a longer term larger top is in formation and the rest of 2015 could turn ugly for...
Just an interesting study using arcs and Fib retracements. Using BRK for an overall proxy for our markets to gain insights as to if we may be nearing a generational top.
This chart suggests to me that we may be closer to some sort of top than we are to the beginning of a new secular bull market as some have suggested.
Before FOMC, I believed IWM was poised to break thru fib ext 1.618 at 118.15. Now in two days, I now have a short term excess supply signal as IWM tested down. Circumstances changed. I have changed with them. I expect the fib 1.5x as a target 112.07. Back and fill.
IWM hit an important trend line that has been in place since July 2014. There are a clear 5 waves up and bearish divergences. Expecting some type of retrace down to the 114-112 and maybe even 110 area-before starting the Santa Rally.
With bullish sentiment at 96% per www.sentimenttiming.com some type of pullback is expected. Good luck
IWM hit an important trend line that has been in place since July 2014. There are a clear 5 waves up and bearish divergences. Expecting some type of retrace down to the 114-112 and maybe even 110 area-before starting the Santa Rally.
With bullish sentiment at 96% per www.sentimenttiming.com some type of pullback is expected. Good luck
