This is a simplistic EWT chart I have that shows what I am thinking. Since it is a mountain, it is obviously not perfect, but the mountain allows the lesser counters to "see" the EWT count better. I do not like the look of the potential 20/50ma cross. We're at the top trendline on this chart in the ABC corrective and on lots of wedges, so is a turn here imperative? Not the "big one" IMO. Not yet at least, but let's see what the lower trendline does here soon. I expect it to be violated on the other charts (see targets in below posts). We may plummet to 950ish here very soon.
Technically where we are now could be considered the E touch of the A-E black wedge forming the ABC AND if you notice on this chart 1004 is the 38% fib line which means a technical retracement is completed. I'm just not ready to call a top yet mainly cause of the formation of the ABC corrective is not complete. It could be though.
Note: Check out the weird ass period of the market at the end of last year where the SPXA50 went from near 0 to over 400 but the market remained fairly flat for the period. Strange.
Link to chart in my chartbook. If you do go there please give me a vote at the bottom of the page. Thanks.
The wedge looks classic and is a good argument that your P2 top will be within it, ~1010.ReplyDelete