From Daneric Elliott wave site
Beginning of a significant decline? Futures point bearish. Here are the support layers that exist from 878. There exists support (which may quickly become resistance) at 935. The next support layer spans from the top of the gap at 923 - 927 or so.
After that breakout support at 914 and a little below that the 200DMA.
900-904 offers a zone as well. Ultimately 875 - 878 is the bedrock support for P2 at this stage.
At this point EWI's primary count that this was a 4th wave triangle (a distributive kind of triangle I suppose) and the 956 push was a 5th wave top is looking pretty good at this stage. Indeed if their count is correct, than the gap at 920-923 may be filled today or tomorrow. For if their count is correct then any decline today would be a 3rd wave down and Friday's goofy action was just a pause in the decline. I guess all of Friday's ABC structures were just that - correctives.
Ultimately though, I still am looking at 910 - 914 support as a key to the whole wave structure. Thats a key EW marker for now. If 910-914 maintains, then any decline might be considered an ABC pullback from 956. If 910-914 breaks lower, then you're looking at a potential significant decline and a signifcant impact to the overall wave structure with larger impulsing patterns down.
Jay
THE NEW JAYWIZ 2023
THE NEW JAYWIZ 2023
6 comments:
Hi Jay. Do you see a bounce near end of day? I'm looking to go long there for a scalp and sell tomorrow morning sometime.
Thanks
Kathy
I see bounce around 920 spx or 914. too scared to go long here though. I trid at 920 with positive divg. but got stopped out. happy with the shorts for now
sam
I'm long now.
Kathy
good luck you will do all right
sam
you too sam.
I think Jay's blog is going to be a great daytrader site if we can get some more traders posting real-time trades here. Just lay it on the line. We can can all feed off each others calls.
Kathy
We are doing a minor ending diagonal that should lead to a low slightly below the 919.65 low so far. A 38.2% retrace of move from the Friday high gets to 930 back test. Then down.
But is today's wave i of (iii) or all of (iii)? To get the kind of decline that Jay sees ahead, today's drop can be i wave of (iii) down . In which case, we get bigger drop fro retrace to 930!!
Of course, all this assumes that we are not finishing some Kind of a,b, c from 956 of Thursday.
Ravi
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