Balanced View: Intelligent Discussion of Market Trends

tech

I agree with Hatman, lets just wait and see if we get a failed retest.

As you know as postod on bomb I left a substantial limit sell order at S and P 1097 in the futures market but as my e mail is down dont know if I got a fill as yet.

If we get some sharp falls any retest should be around 78.6% so the risk reward in entering shorts at these levels with stop above 10376 is good.


As posted last week regardless as wether this is a wave 3 or C of the October lows the 1.618 relationship lies at 10398 and we came within a whisker of that.

I would expect a minimum 38% retrace even if this is a wave 3 so we would be looking for almost 1200 points of the Dow which is worth having in anyones book.

However the nature of the decline will be indicative of the future market direction as a slow overlapping decline suggests a wave 4 with 5 up to come to new highs.