Feb 2, 2016


SP500 squeezed 7 points higher and touched MA200. Now we have another 5 waves higher and the move looks like a-b-c so I expect a move lower to begin soon.


  1. Thanks Krasi for your beautiful work, I am not sure is the "c" which is touching the MA200 is wave 1 of bullish move? or why that has to go down (your red line on the chart)to shape a double bottom?Thanks,

    1. Only three waves a-b-c is corrective move not bullish, so it has to go down - the red line.
      I have drown it like double bottom because it is too early to say higher low or lower low.
      There is two options - this is wave 4, wave 5 to follow with lower low or more complex corrective move higher with higher low.
      I expect higher low, but first to see how the move lower looks like before betting on the more "exotic" move.

  2. Still thinking we are retesting lows? I was of that opinion until the late day ramp and think we might looking at another leg up. That said the action is very choppy so hard to be confident.

  3. Yes very choppy and not an easy call. My best guess is that there is more to the downside, but not for very long a few days.
    See the new post.