Nov 22, 2016

Update

SP500 is catching up making new highs after DJ and RUT already made new highs. The pause which I was expecting is behind us and this high is the one with the red arrow from the daily chart. Reaching it so fast makes my preferred scenario one more high more probable.
Two different Fibo measurements point to a top around 2207-2208:) curious if will see a top today or tomorrow at this level.

Strong wave A and weak wave C with divergences

I do not expect sudden reversal and a plunge lower. MA20/MA50/MA200 starting to converge. Any move lower should bounce from the MAs and than we watch lower high or last marginal higher high. Patience no need to hurry.
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5 comments:

  1. AnonymousNov 22, 2016, 3:56:00 PM

    Hi Krasi,

    I am looking at the chart and have noticed wave 1 post election with our current move being wave 3 after small pullback. Could this be again? The move high is very reminiscent of the wave 3 from brexit where divergence in both macd and rsi persisted for weeks. I too thought reversal but this move looks too much like brexit pattern. Your thoughts?

    Kali

    ReplyDelete
    Replies
    1. KrasiNov 23, 2016, 12:20:00 PM

      It is difficult to see an impulse. If it is an impulse this is wave 5 not 3.
      Brexit 12 days and the trade for this rally was over. Election 12 days and the trade for this rally is over.
      Brexit after that for weeks the indexes doing nothing. After the election I wrote that it will last for weeks before we see a top... even until Christmas.
      Looking it from this angle yes similar price action.

      Delete
    2. AnonymousNov 23, 2016, 2:28:00 PM

      Thanks for your insight. Always appreciated.

      - Kali

      Delete
  2. AnonymousNov 25, 2016, 10:18:00 AM

    Hello Krasi,

    We have a lower low on Gold and divergence, what do you think can happen now ?
    1320-40 target?

    Thank you.

    ReplyDelete
    Replies
    1. KrasiNov 25, 2016, 7:17:00 PM

      We should see a move higher soon.... but not so strong. I thought higher target was possible because the USD is still in the triangle. But now the final move higher for the USD is running and Gold plunged below MA50/MA200.
      I can not see signs for important bottom at the moment. I can not see finished pattern.
      I think any move higher will find resistance at MA50/MA200 currently around 1270-1280.
      Personally I am waiting for a more important bottom in 2017.

      Delete

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