Well folks if you're trading - or trying to trade - the expected rally continuation for this week and (we hope) into next week and perhaps a few days past next week ... you've got to remember this should be a fifth wave structure for the rally top. Let me tell you right now: it's probably going to be a choppy ride at times. If you're a KI$$ type swing trader, you probably went with the idea of going in some yesterday, some midday today, and let it ride looking for the right time and price target. SPX 1150 is a level Terry Laundry has mentioned, and Andre and Tony have numbers around there too. So we should have a better idea by middle or end of next week. Meantime, for the KI$$ approach - set your stop at Tuesday's lows for swing longs in equities indices. Alternatively you can use SPX 1126 as your stop level for the swing long.
Of course, the real level the SPX must remain above is 1114, and 1126/1127 is also very important; but my best guess us that today's lows must be respected to preserve the current wave structure view. It may be possible for equities indices to remain in a bullish count if Tuesday's lows are violated, but I don't think the odds are with that idea.
Wednesday is Weird Wollie Wednesday, can you believe it! Maybe that explains the shape of the ChartsEdge maps. Or maybe it's the wave count - a lot will depend where the market opens in the morning (remember, that's when these maps kick in). And if you are speculating intraday in the markets by daytrading - remember these maps are just trading tools - use them as I do, as part of the set of tools and indicators you already find reliable - for me that includes Elliott Wave, TICK and TRIN, VIX, and relative movement among currencies and sectors like the banks and financials. It's kinda like the weather forecast, in my humble opinion. Also tomorrow at 2 pm, the FOMC minutes. Well, we'll have to wait to see if tomorrow brings the SPX over 1140, or if we'll have to wait longer to see it. So for now, g'night, careful as always out there, and happy market navigating!
Thanks once again to Mike and ChartsEdge for these maps from http://www.chartsedge.com/wp/!
Of course, the real level the SPX must remain above is 1114, and 1126/1127 is also very important; but my best guess us that today's lows must be respected to preserve the current wave structure view. It may be possible for equities indices to remain in a bullish count if Tuesday's lows are violated, but I don't think the odds are with that idea.
Wednesday is Weird Wollie Wednesday, can you believe it! Maybe that explains the shape of the ChartsEdge maps. Or maybe it's the wave count - a lot will depend where the market opens in the morning (remember, that's when these maps kick in). And if you are speculating intraday in the markets by daytrading - remember these maps are just trading tools - use them as I do, as part of the set of tools and indicators you already find reliable - for me that includes Elliott Wave, TICK and TRIN, VIX, and relative movement among currencies and sectors like the banks and financials. It's kinda like the weather forecast, in my humble opinion. Also tomorrow at 2 pm, the FOMC minutes. Well, we'll have to wait to see if tomorrow brings the SPX over 1140, or if we'll have to wait longer to see it. So for now, g'night, careful as always out there, and happy market navigating!
Thanks once again to Mike and ChartsEdge for these maps from http://www.chartsedge.com/wp/!
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ChartsEdge Daily Charts
Posted: January 5th, 2010 | Author: Mike Korell |Filed under: One-Day Market Map | No Comments »
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