I'm waiting on the divergence on the 60m RSI to get set and for the Daily S Sto to bull cross and begin to run up. When we get both of those, we'll be set for a bounce. Then I am long.
Now, the million dollar question is what type of bounce? Are we talking a wave 4 retracement to the prescribed fib levels or something that invalidates the counts and throws the EWTers into another frenzy? I am still divided (for some really bizarre reason) on the P2 or P3 scenario. I'm not willing to give up on the manipulators just yet. Bottom line IMO is if they get a short squeeze on the dollar we get P3 if not they can continue to manipulate the market.
Although POMO is toast and the treasury is at their ceiling, they will find some way to dig further into our pocket books and find more $$ to prop this bad boy up (unless they have thrown in the towel). All that is left in my pocket is some sand and a nice lint ball, so I got nothing left, don't know about you.
So, I am looking for a pop but to what degree I do not know. somewhere wave 5 of C disappeared IMO. Is a truncated 5 still to come? Will the 2 of 3 of 3 be the count. This is the tough time that I have been warning about for some time. Bottom line is that it should be very choppy for a week or two.
I plan on continuing to follow the daily indicators up and down as that has been the best way for me to play the market and keeps me on the right side. I'll add that I am leaning to the P3 count as the weekly RSI downward cross of the trendline and a hook in the monthly RSI are indicating the top really may be in this time.
SPX Daily - I have placed a dashed green vertical line indicating a possible buy here. Price bottomed out on the lower trendline and the lower BB. S Sto has bottom, but the MACD hist has not confirmed the turn.
SPX 60m chart - Waiting on the divergence in RSI and CCI has possibly bottomed.
These charts are from last night.
How is your favorite index performing?