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Sunday, May 17, 2009

Friday's Microsquiggles


This 1 minute SPX chart is produced from the bearish primary count in that the market is making a series of 1's and 2's and that the move to 878 was a 5 wave impulse and not part of a b wave flat in the wave (ii) position.

Lots of stuff packed on this chart. What is hard to show is the fact that the big RED hourly candlestick on Friday is what drove the market under a last ditch trendline that had been in place since the sub 800's. I threw that approximate trendline on the chart

On the surface, it appears the late Friday rebound will push higher in some kind of backtest move either on one of the trendlines I have on the chart or resistance or both. How it handles itself from here will be telling. Watch your volume on Monday, both up and down and particularly the advance/decline ratio.

For instance a market that opens the day with, say a 12 - 14 advance/decline ratio spike on the opening minutes is definitely saying its gonna be a bullish day. Of course overnight futures will also be telling. In fact, overnight futures may actually do all the "backtesting" of the trendlines and fail overnight.

6 comments:

  1. You're a devil...I am glad you put the abc move in with that b diagonal...I iz playin it

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  3. You're on the right track Dan - If you look at a 610 tick or 1 minute chart of the e-mini, you will see that a leading diagonal in the "A" wave position formed during the last 75 minutes of trading on Friday. This appears to set up a small Wolfe Wave short down to 878 on the e-mini which would form Wave "B"......If this plays out, then the upside "C" wave targets are 884, 889 and 895 to 896 (on the e-mini futures)...
    Outstanding downside target is still 844 to 846 on the e-mini though....Thanks for all you do ---tbrown

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  4. http://www.4shared.com/file/25663023/a17420c4/Bryce_Gilmore-_geometry_of_markets_I.html?err=no-sess

    Here's a link to a PDF version of "Geometry of Markets" by Bryce Gilmore - The info on price projections is extremely useful....Thanks again - tbrown

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  5. hi,
    I saw that diagonal shape on the futures as well on friday. I'm zoomed in all the way and you can also interpret this to be a 5-3-5 zigzag with an impulse-3-ending diagonal pattern. impulse has extended 3rd and ends at the 882.75 area. ending because it looks more like 3-3-3-3-3 rather than 5-3-5-3-5 at least to me. the leading diagonal could be it as well but I have a harder time finding the last 5.

    thanks dan, love your 1 minute charts.

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  6. looks like futures just broke support. suppose if my zigzag count is correct, there is perhaps a zigzag down ending soon then an impulse up giving a flat. otherwise not looking too bullish. Honestly I would like that bounce as a selling opportunity but the market rarely gives such chances.

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