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Wednesday, June 10, 2009

Elliott Wave Update - 10 June

EDIT 4:30 pm: e-minis just got whacked a bit. (EDIT 2: Thanks Bt888 in comments for the explanation on why) You know I'll be honest, this is a very dangerous market - if ever a triangle was going to fail and fail miserably, it would be a P2 trying to push for a new top after a 3 month rally - it takes balls to play this market to the upside at this stage. However I respect triangles. Buying the [e] wave low was easy. However, hanging on and expecting a bull move breakout up after the intial Fib bounce is what takes moxy and I don't have that kind of mad trading skills. So be careful out there. I can only map what I see and make logical guesses.

Fakeout move up today ensured a very bearish reversal yet it traced a very obvious (yet nasty) 5-3-5 zigzag down. In fact the (c) leg pretty much equalled the (a) leg for a 1:1 ratio which is common for a zigzag. I bet you all were counting off the waves and bought the [e] like I suggested yesterday. How many thought 926.44 was going to break and that the new trend was down and that the triangle was all just a bunch of bunk? [e] waves can look like hard impulse down.

The waves say a breakout move above 950 is coming tomorrow (or Friday). The triangle has traced long and wide. I count it as complete. Now its up to the market to comply.


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