Pretty amazing, huh?
Seems like I had read the action on NQ well. There is no doubt on my mind that market shook out a lot of people and dragged in a lot of shorts yesterday -- That is just BEAUTIFUL!!!
It teaches why one should be careful going against the prevalent trend!
It also seems that I was OK seeing the recent decline as a corrective wave structure
lats night, I saw a bunch of Perma Bearish counts that marked previous peak as the end of some wave 2, and counting yesterday's drop as a 3 of 3 of 3 of that sordid dream they have to get DOW to become 300-400 or something. Market played it differently -- BEAUTIFUL!!
So far, no sign of 3 of 3 of 3 of perma bears, maybe later ;-)
Where are we now?
Well, when waves do not correct much, it sometimes becomes hard for me to distinguish between discrete waves of the same degree and smaller extended waves of just one larger wave. The last drop, as noted by venerable Tony Caldaro, was 23% -- good enough for a correction in a strong trend, I guess.
We may also be dealing with a wave 5 to the advance that started from S&P 1040 cash/
So, I am not sure as Intraday waves are concerned. As for larger waves, the two scenarios I have mentioned as my preferred are still playing out
I had some levels and the top ones were taken by the market. Well, partial profit's booked and one moves on. There are new trades/positions becoming available all the time, like the NQ from yesterday drop.
For S&P, I have decided on two levels for now, 1135, and 1120. I may let go or I may hedge if I see market may be faltering
We have, BTW, a successful Inv H&S playing out.
This is a 60-min chart. Intraday breadth has been awesome.
Remember last night I said that faster McClellan was neutral and Summation was positive and I could be looking for a turn in McClellan? I'll have to check EOD, but I thing McClellan will turn, and I think I should be looking for negative divergences building again.
We had another Gap up. Is it an exhaustion gap? a continuation gap? I don't know. It may be setting the stage to drag money mangers in for end of quarter and getting people overly bullish again -- I'll just follow the price and adjust my levels
Have a Wonderful Friday!
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago