Short term update

UPDATE 16.10 - target for wave "b" reached. Two strong days and now higher probability that the next move up(the alternate scenario) has begun. If the indexes do not reverse at this levels and tomorrow we see another strong green day the alternate scenario will play out.


Positive day as expected. A better short term chart with the same colors as the daily chart the last one was a little bit confusing - green highest probability, red alternate scenario. The plan has not changed I think the correction is not over. SP500 is short term oversold after five red days. We will see a bounce because there is a co-influence of support, EMA50 and the trend line(see the daily chart). But we have not seen the players being really scared and I think last final sell off and VXO around 20 will mark the end of this move. If I am right we are in a wave "b"(green scenario). If I am wrong we already saw the bottom with W=X=44 points(red scenario). The move from the bottom should be very strong at least for several days. Today does not look very promising... the way this move up is developing will tell us the story.