Sep 20, 2016
In the previous post I wrote that we should expect a move lower and 40 week cycle low. It looks like this scenario is playing out so no need to change it. I was a little bit too late for the short term, but for the intermediate term it is just getting interesting. The move lower should not last very long, after it is finished expect the high to be tested. The short term pattern is not clear and volatility is expected (FOMC tomorrow) so it is a guessing game. I will wait to see how a bottom will look like (impulse or correction) than we will know what to expect from the next 40 week cycle - higher high or lower high. Do not get too bullish, the next bigger move should be lower.... no matter lower or higher high. P.S. On the charts is shown bearish path this way my long term forecast makes sense. If you are bullish long term(2017) you want to see more to the downside and lower high. With higher high the pattern from 02.2016 will look like finished ED and the bulls do not want to see this. Short term - only three waves down/up and volatility expected tomorrow there is too many options. What we know - the line in the sand is the same from last post 2160 and the move from the low(the big red candle) is choppy overlapping. So as long as the price stays below 2160 we should see one more lower low.