Jul 2, 2014

Update

The short term structure has changed... but the bigger picture stays the same. My intermediate term forecast has not changed - when this wave is finished pullback to 1925-1910 and another all time high.

What I think we know after yesterday:
- the 20 week cycle low is probably behind us and the current one will carry the prices higher for a while...
- from EW point of view the structure needs more time to finish all the moves... probably another week
- short term I think there will be one more dip to buy and another higher high to around 1985.

The move can be counted different ways. Given the price action today I think the yellow scenario has much higher probability. The white one if we see something deeper to the downside.
The final wave for the move since mid April decided to extend(ED?), but this does not change the big picture.

2 comments:

  1. Haha, finally it's here 1985!!! What a magic number. But I still don't want to short it now, by looking at the movement, it closes almost at the highest point of the day, that's very bullish, what do you think?

    ReplyDelete
    Replies
    1. Wave 3 strong move as expected. I do not see a reason to short unless you want to chase 10-15 points lower.
      If the chart above is right there is more upside.

      Delete