Feb 27, 2013

Short term update

UPDATE - 28.02.2013 : The system issued buy signal today. I would wait for a pullback for a long trade.... there is divergence on the 15 min chart. Pullback should be in the 1510-1515 area - support, EMA50 on the hourly chart and 38,2% Fibo. Beware bellow 1510 it still could be X wave.
The histogram on the daily chart is rising and there is triple cross on the hourly chart so the odds point higher. See the chart bellow the trend line is around 1545. If we see failure again... than it is some ugly top.

UPDATE: channel busted:) the picture is not clear it still could be an X wave but the pullback could be over too. In wait and see mode.... waiting for higher low or lower high - a trade with low risk.
Look at the hourly chart of DJ and you will understand why in wait mode. Megaphone in Megaphone... one month WTF!?!?!? until everybody give up:)
My gut tells me expect higher low than higher high with divergence. Not much different from my plan for a choppy correction but I was expecting to see something at least around 1475 to test the previous top SP500 made it only to 1485...

UPDATE: wedge busted it is now a channel... SP500 stop moved above resistance at 1515 (resistance 1514 which is 61,8% retracement too)

I told you - do not expect waterfall just choppy correction. The structure itself confirms my expectations and says that we should not expect a lot from this move lower. Ugly but it is what it is.

Ok the projection from yesterday is close enough, no pullback for several points just pause around resistance and higher to the yellow line.
The updated chart bellow - the upper wedge line reached and EMA50 on the hourly chart is tested again.... now the indexes should move lower again or the correction is over. I has not touched the upper yellow line:) I swear pure luck:))

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