post bank intervention it's much easier to manipulate ,no bear stearns to pick off the whales,eom and expo seem to always work upward,snow,thanks for putting this out there
ammo - You are welcome, and thanks for reading and commenting.
Not a bull, not a bear, I am just a wolf ... 偶還是習慣稱行情漲為紅盤跌為慘綠
It's good that SP futures pulls up a lot before the market opens. We will need to watch to see if the cash index would fall below the starting point of last up waves - the low of 04/23/2012 in order to decide which count is valid.
If 04/23/2012's low is breached, the wave count of 04/28/2012's post becomes valid. Otherwise, last weekend's count is valid.
Not a bull, not a bear, I am just a wolf ... 偶還是習慣稱行情漲為紅盤跌為慘綠
[B]Just so I understand this correctly, as this is very interesting regarding the wave count, if the futures (/ES) breached but SPX did not, which takes precedence in accurately counting the waves? [/B]
ScalperJoe - Very good point! That is a very good question indeed! We trade wave, which is following some natual law, so we want to trade something that has good liquidity and good volume. The more people participate the market, the more accurate we can get from counting the wave. It is a dilemma whether we should or should not count the wave of after hour's futures market. The after hour's trading is much easier to be manipulated. What I do is to have a 2-way consideration: I count both SPX and futures index. Today's market is an example that the after hour trading penetrated 04/23's low, but in the regular hour the market tried many time without being able to breach that key support. Now I guess that we have two possible counts:
1. ABC has completed the wave [IV], so the market is heading north for [V].
2. Or the market is heading down in a massive wave-III collapse.
Not a bull, not a bear, I am just a wolf ... 偶還是習慣稱行情漲為紅盤跌為慘綠
Ok, so if the March low of 1,340 holds then I agree with scenario 1 that the market would rally as a wave [V] for a retest of the highs.
If it doesn't, then one target for scenario 2 downtrend is the next fib level of the bigger 5 wave pattern, which happens to correspond very closely with the Wave 1 top of around 1,293.
Given that the 100day moving average and two large daily tails offer support on the SPX chart, it seems more likely that your scenario 1 will prevail. These corrective wave patterns are quite tricky, and definitely have more headfakes than the clearer Wave 3 pattern.
ScalperJoe - Good point! Yes, the 1340 is the wave-4 (the lower degree wave) where a corrective wave would stop. Thanks for summerizing those two scenarios. Today the market gaps up, we will need to see if the gap can hold or not. If the gap holds and market goes higher, then probably the wave-[V] is underway. If the market fails to move up, we need to be careful that it could be forming a wave-2 (corrective wave) in the scenario #2.
(More posts and charts on my blog.)
Not a bull, not a bear, I am just a wolf ... 偶還是習慣稱行情漲為紅盤跌為慘綠
today u said wave3-4 have finished.
how do you judge wave3-4 finish, by 30min macd crossing down?
could it be possible to have ABC, i.e. 1st leg SPX 1295 to 1328, then down to 1315, then tomorrow 2nd leg up to ~1340? thanks!
hq1888 发表于 2012-5-22 22:12
hq1888 - Thanks for commenting. No, I don't use any indicator. Since the market has followed my purple line wave count the past two week (accurately to even each reversal day), I would rather believe that the market will continue following my purple line wave count until it says otherwise. Yes, it could be the ABC scenario if today's day high is penetrated. It could be anything. Since the current preferred count works pretty well, I would like to take your idea as an alternative count.