ChartsEdge (US equities) map for 10/22

Here's today's intraday map from ChartsEdge Daily Maps (remember, their BP intraday map for today is at their subscriber site - follow links on their site for details, link above and at right):
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ChartsEdge Pattern Recognition Chart for Oct22

Posted: October 22nd, 2009 | Author: Mike Korell |

Filed under:One-Day Market Map | No Comments »

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Thanks once again, Mike and ChartsEdge!

Folks - at this point, a lot of people have noticed the negative divergences in equities markets, but does that mean "they" can "do anything about it"? Traders are also scrambling to check for trendline supports or breaks, prior swing low supports or breaks, etc. Despite the provisional labeling that Primary wave B is complete, there can still be either another wave(let) up if an alternative wave count comes to the fore, or a serious wave 2 up that makes a high retrace upward of yesterday's drop. Doesn't have to happen either, but coming right off a high there will be efforts to test the first "dip" from it.

But be very cautious trading it, too. There's potential for whippy, volatile action, so let your ego take a back seat to trendlines, support/resistance, oversold/overbought indicators. We may be overbought in the big picture, but can become short-term oversold in the intraday time frames. Remember how quickly that break of SPX 1095 late yesterday led to 1092,1087,1082 and even under 1082 to potential intermediate channel support. I'm not saying be afraid to trade, just pointing out that trend reversal patterns can surprise before they confirm - and we haven't confirmed yet.

As for the Bradley model turn date 10/22 - did it come a bit early, yesterday? Will it be a low that sends the markets higher? or come a bit later? Or be today after all, maybe with today providing a wave 2 that "turns" the markets for a trend reversal down? Or will it simply, as Manfred Zimmel has suggested, apply to the oil markets (making a high there perhaps?)? We may as well use our other methods and tools to navigate for now and just remain aware that this Bradley date may mark this time for some important turn.

So just keep it sober, play by your rules - and as always, happy market navigating!