Jul 29, 2014
When I wrote we will adjust the short term forecast on daily basis I did not mean three times a day, but the market is in a hurry this two days... So here is more chart porn..... what should I do "Algos gone wild":)))))) The market bottomed at 1973 than it made a top at 1981 as the chart from the previous post shows. Now the problem is I am not sure what would happen. It depends on how the market will interpret the news tomorrow. The markets closed as if we have a-b-c with a=c the DJ shows better picture you can see waves a and c are clear 5 wave patterns with the same size (red scenario W-X-Y). On the other side why not the white scenario very simple pattern impulse lower correction and another impulse lower if the market does not like the numbers. In hindsight it will be easy to say hey it was obvious, but with GDP and FOMC tomorrow I can not tell you what the algos will do. I have the feeling that we will see W-X-Y because it will screw more traders up, both bears and bulls.... and that is what the market usually does.