Big Rally Due Next Week for SPX into October 7
Don't let "The Boyz" of Wall Street steal your stock.
Big rally is due next week.
4:00 p.m. Update - SPX closed on 78.6% completing what looks like a bullish Gartley type pattern.
Big rally is due next week.
4:00 p.m. Update - SPX closed on 78.6% completing what looks like a bullish Gartley type pattern.
posted by chartblog at
2:57 PM
4 Comments:
Respectfully disagree.....Charts still indicate bearish forecast.
The indices found another way to add indecisiveness to the current market pattern this week. During most of the recovery, the indices have focused on giving us huge swings in both directions to keep both the Bulls and the Bears paranoid and in check. Now, they’ve added index divergences to their bag of tricks, courtesy of more buoyant price action on the Blue Chips and weaker action on the
Techs. On the week, the Dow managed a gain of about 1.5%, while the NDX lost about 3%.
Regardless, nothing has been resolved over the past five sessions as the same indecisive movement continues. But it is interesting to note that the Techs are lagging here. Often times, they lead market moves. They were stronger during most of the recovery. So know that they’re proving to be weaker, maybe it’s an indication of a resolution to this funky action sooner rather than later. We all know it couldn’t happen soon enough.
On Wednesday, we laid out all possible labelings of action off the 2011 highs. The purpose of that was to understand where the probabilities lie and when and how we might expect resolution of this pattern. But the other unsaid purpose was to show you exactly why we can’t possibly have confidence in the near-term action, because there are so many ways this could play out. By all reasonable measures, all signs continue to point to an eventual southbound resolution, and any effort to justify something else just gets more and more far-fetched. But other than that, it remains a waiting game.
What Elliott wave count and structure would you use from the market top earlier this year?
With the weakness in the NDX, it seems timely for the SPX and other indices to follow the Russell and Dow below the August lows next week.
Although a bounce is likely sometime next week, I would prefer a washout down to your 1075 SPX target to define a potential low for a multi-week rebound.
Dave,
If we will see a recovery in Dow nextweek without breaking Friday's low, my minimum target will be 11,661, and maximum 1211. I would expect we would be still in corrective mode and we have to be aware of late October down trend as you pointed out.
thank you,
NN
Correction. -> maximum 12,111.
thanks,
NN.
Post a Comment
Subscribe to Post Comments [Atom]
<< Home