The daily SPX made a Hurst 83 TD/17-18 week Cycle Low on 10/27 Lows (click on chart to enlarge) and is now in bullish mode. Normally the 17-18 week Cycle sees a sharper retrace than what we have seen into 10/27 Lows, even though we are in a wave 3 Higher. The 62 TD Cycle arrived on 11/1 Low and is also in bullish mode.The market rallied to Cyan and red Channel resistance, closing at 1225.85 SPX Friday, suggesting a pullback is due.
IF Wave 3 is 1.618 X Wave 1 = 1231.16 SPX, also 61.8 % retrace of the 10/07H-3/09L = 1228.74 SPX, so 1229-1231 SPX should be formidable resistance. Friday's 11/5 intraday High was at 1227.08 SPX.
2/05/10 Low + 54 TD = 4/26/10 High.
8/27/10 Low + 54 TD = 11/12/10.
Once wave 3 completes, we will see a larger wave 4 corrective decline, that should hold above the 1130 SPX wave 1 Highs.
2 comments:
Once wave 3 completes, we will see a larger wave 4 corrective decline, that should hold above the 1130 SPX wave 1 Highs.
Hi Ian can you explain what you mean by saying a decline that should hold ABOVE the 1130?
Hi Mouth,
The wave 4 decline should hold above the Top of wave 1, which is at the 1130 SPX. It is an Elliottwave rule.
We should then see a wave 5 rally to higher highs.
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