Hello Traders,
a quick look to the SPX.
Something interesting occured at the Oepningbell at August 07! A Gap up to 2855.92 was created by traders behavior and a topp was set @ 2863.43 that day.
Even a Gap down is to observe on August 10 to 2839.64 and this one remains open so far. This can be set as a „Island-Reversal-pattern“ and may is the Entrence for a fresh multiweek long bearish phase for the market!
The following pattern is able to be classified as a „5-down“, which may is the first wave of a new impulsive move down.
Not every „Island-Gap“ work out and markets are likely to reverse, but the time is right for that, because of technical measurements and the time the Bulls run there course! So expect a countertrend rally.
In Elliottwave conditions, there is a „5-down“ to count, and may the ending session on Friday was the low at 2825.81, which is a wave 2 next to occur, may terminating around 2849.10 – 2855.38, which is the 0.618-.0786 Retracement of the decline. Notice that the past FibRT that markets created, have been running this lenghts and distance, which often stretched our counts and confidence in itself!
On the other hand...if an expected countertrend is likely to terminate around the ~ 2840.18 zone (not showing a fresh new significant low..), which is the 0.382 Rt of the decline so far, the odds do increase, that we have seen a first wave of a „ZigZag“ or something else is still developing!
It will be invaluable to see, how this one is terminating!
Be prepared for the unexpected...
Have a great week....
ruebennase
Questions and Comments are welcome!
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!
Data by NSEIndia.com!
a quick look to the SPX.
Something interesting occured at the Oepningbell at August 07! A Gap up to 2855.92 was created by traders behavior and a topp was set @ 2863.43 that day.
Even a Gap down is to observe on August 10 to 2839.64 and this one remains open so far. This can be set as a „Island-Reversal-pattern“ and may is the Entrence for a fresh multiweek long bearish phase for the market!
The following pattern is able to be classified as a „5-down“, which may is the first wave of a new impulsive move down.
Not every „Island-Gap“ work out and markets are likely to reverse, but the time is right for that, because of technical measurements and the time the Bulls run there course! So expect a countertrend rally.
In Elliottwave conditions, there is a „5-down“ to count, and may the ending session on Friday was the low at 2825.81, which is a wave 2 next to occur, may terminating around 2849.10 – 2855.38, which is the 0.618-.0786 Retracement of the decline. Notice that the past FibRT that markets created, have been running this lenghts and distance, which often stretched our counts and confidence in itself!
On the other hand...if an expected countertrend is likely to terminate around the ~ 2840.18 zone (not showing a fresh new significant low..), which is the 0.382 Rt of the decline so far, the odds do increase, that we have seen a first wave of a „ZigZag“ or something else is still developing!
It will be invaluable to see, how this one is terminating!
Be prepared for the unexpected...
Have a great week....
ruebennase
Questions and Comments are welcome!
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!
Data by NSEIndia.com!