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Friday, November 27, 2009

E-minis (1:22pm)

The game is still in the futures action. So far a three wave move has occurred from the low. If the bulls can hold here and make a new high, then its a bullish sign and hence a 5 wave structure is bullish. If the bears can break it below the blue horizontal line, watch out, I think Monday is going to be very nasty down. So yes, it comes down to this simple 10 point swing in either direction....

Here is what I'm watching for: A 5 wave impulse structure on the e-minis. And yes its the e-minis because thats where the action has been over the last trading sessions. I'm looking to see if a wave iv bounces off the top of the red channel. And of course it cannot retrace into wave i's price territory. Wave iii is about 1.5 times wave i using the price low of the wave ii correction. The purple line is roughly support again too. [edit: I also show wave ii as an upward flat which conveys buying pressure. The alternate to this count is an a-b-c corrective sharp 5-3-5 zigzag. Now we await to see if wave v is coming]
The rally in the e-minis looks more impulsive on the way up than on the way down. And its working on the 62% Fib mark already.

Very sharp rally. The thing about the e-mini move down is that the third wave would be the shortest so the whole thing looks odd to be counted as a 5 wave impulse down. Of course the huge gap down at a top on the cash index is a big bull target. Bears need to make a stand here and now or else get the full horn yet again. But on a low volume trading Friday....


The lower red horizontal line is solid support. Shooting star candle has 7 minutes left to not be.
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