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Wednesday, May 04, 2011

Market Timing-Whats Next -May 4th Afternoon update

THE COUNT BELOW is OBVIOUSLY incorrect and the SPX appears it has no intention of dropping under 1340.

THis has the LOOK of a 4th wave back off from the 3rd wave high of May2nd.

Count the 10 am low at 1345 as wave 1
now waiting for wave 2 to complete some time this am, probably by noon

Use fibo relationships we might consider the following today
25 pts down from 1370 high to 1345 as above= wv [1], now in wv [2]
25 X a.618 = 40 pts
consider wv [3] 40 pts could take the spx to 1310-1315 area later today
leaves wv [4] which would recover from the 6th to the 11th
consider wv [5] ending on 13th, and or 17th   = WAVE "A"

silver off 20% in a few days- hmm

then 1380 is likely on the 11th

THE LOd so far today was at 1pm right at 180bars
3;30 @ 210 bars should be the next pivot low
1341.50 was the LOD and is right at the 1340-44 band of support
Today lacked the needed energy to plunge
the NEXT date for a possible plunge which has the energy to support
such is May 12/13 as shown on the 2 charts.

BUT prior to that and in ACCORDANCE with BOTH SPIRAL & Jaywiz monthly turns is a possible high energy date of May 11th, and beleive it or not, we could see the SPX at another new high in May above 1370.

There is NOTHING between now and May 11th to get in the way of such a run.
Tomrrow as prev described starts in a disruptive manner & has 2 cycle pivots converge at 10am, or earlier. SO, IM planning as prev mentioned to BUY the open tomrrow.

An interesting {hi to hi} CYCLE has come to my attention
pegging a high on May 20th, which is related to a high on Feb 11



Jay Strauss said...

IF THEY DONT PLUNGE TO 1320 today, then 1380 is possible by the 11th


Jay Strauss said...

buy this dip
and buy tomrrow's lower open

Abdullah said...

We were down 130 points this afternoon and then the buy program express pulled into town and now we're down just 84. A lot of the NASDAQ leaders that have been beaten up, are jumping strongly, like AMZN etc. Are they signaling that the selling is over?

we bounced off the 10 day moving average like a rubber ball. As long as we end above that.. the last three days of soggy trading mean nothing.

There's no question that the market is tired. No question they are worried about Friday's jobs report. No question that the overall economic picture is a bit weak considering we spent trillions and all we got was a lousy 1.8% GDP for the first quarter. Hard to believe you can spend trillions of printed dollars and get sub par results.

If the market continues higher and the SPY gets back over 135.65, I'll take some in anticipation of a move higher tomorrow am. But other than that, I'm fairly cautious here since we close at 134.83.

I might daytrade some SLV here into the close when it crosses 39.00