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Saturday, September 19, 2009

Banking Index Projects to 49.26







In a recent post, I suggested that the banking index counts well as either a triple zigzag or a double zigzag. http://danericselliottwaves.blogspot.com/2009/09/bank-index-revised.html I charted a double zigzag and came up with a powerful Fibonacci confluence at 49.26 on the small, medium and large scale.

Small scale = Possible Minute [v] = [i] at 49.26
Medium scale = Minor C = .387 Fibonacci times A at 49.26
Large Scale - Intermediate (Y) = (W) times .618 Fibonacci = 49.26

Also if the target plays out as per my charts, shorting the index at 49.15-49.25 is a good trade to make based on EW theory. You know what the wave should look like and if the count is wrong you can set your mental stop at point above.

That is an emotionless trade based on sound waveforms.

Also amazingly the short term channel chart points toward Wednesday afternoon being the peak of the banking index which is when the FOMC (FED) meeting wraps up.

Also 144 Fibonacci trading days occurs on Friday the 25th of September if you include the day that 666 was hit.

So banking index tops on Wednesday afternoon, the SPX likely on Friday 25th or Monday the 28th of September. Can it be so simple? LOL - I wish.

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