(Click at the pictures to enlarge)What's going on???
Yesterdays move has all but confused the picture. At first the main altenate count in the DJI was eliminated, but the down - up - down move has left us with a several possible counts and visibility (at least in the short term) is quiet low. Therefore it might be best to step back and let the market show its true face within the next couple of days.
Confusion (A great song by ELO by the way - http://www.youtube.com/watch?v=Y1DKJX6NM_c) can best describe what I'm feeling rigth now.
DJI broke the wave i high eliminating the irregular flat possibility (top altenate count), but S&P 500, Nasdaq and several other big indices didn't break their wave i top, leaving us with divergence between the indices.
Looking at DJT, the Dow theory says, that DJI and DJT need to confirm each other. DJT didn't confirm the September 23 high in the DJI pointing towards a important high. The wired moves in the indices might be because the top was a bit premature? Yesterday was the 144 day since the March 6 bottom. Christopher Carolan Spiral Calendar points towards October 9 as an important turning date, so mayby all of this up and downmoves is just to gain some time.
No matter what, This is not the time to play the long side, as we could easely see the bottom fall out. The last serie of key economic figures doesn't look to good either increasing risk for a possible trend reversal.
No comments:
Post a Comment