May 4, 2014

Short update

The chart updated bellow....

From last week - "I think we have finished a-b-c at the moment. So either the correction should finish or it could mutate in something more complicated... another wave x and than y. Again for the bullish case I would prefer this move lower to finish above 1850."
The market chose the more complicated structure and made lower low, but without any technical damages.
You can not deny the beauty of Fibonaci an Elliot waves:) - SP500 touched 1850 an 50% retracement. Wave Y with the same size like W and W as three wave structure with C=1,618xA

I think there is a little bit more to the upside left. Using the same relations the targets are 1895 and 1920. But do not fall in love with this "rally". The bigger picture says the next move lower should follow to finish the 20 week cycle with a low probably the first half of June. SP500 and DJIA look strong, but if you look at Russell2000 and Nasdaq they are very weak. There is a very high probability that we are in the middle of a multi-month topping process. I do not think that this is the time to chase something to the upside unless you are a short term trader.


  1. Welcome back Krasi. I've been following your blog for about 6-8 months now. Greatly appreciate your sharing your thoughts wit everyone. I like your post today and happens t be relatively inline with my chart prize predictive wise. Below is link to my post. I understand if you don't agree with my chart patterns but at least we both agree about a potential pullback to 1871-5 area follow but a rally to 1895-6 area and if 1895-6 is broken than rally to continue to 1920-1 area. That where my top is until we see more price action.


    1. I have not thought about the pattern, I have just drawn something to the upside..... it looks good the ED:)
      Now we watch what happens around the targets.

  2. Krasi...welcome back, how was vacation and where did ya go?
    J R

    1. Nothing special, I was at home in Bulgaria (I live abroad). I had some paperwork to do and the fun part was the wedding of friend of mine:)