Thursday, May 7, 2009
It's still too early to claim victory for the Bears, but the market is right on track.
It appears Rich was correct, wave 3 was an Expanding Diagonal (ED) which allowed the wave1 wave 4 overlap.
I have to hand it to him for noticing the microscopic waves inside the ED. They were 3-3-3-3-3 rather the 5-3-5-3-5. Even on a one minute chart it was difficult to see. This very small attention to detail is why Rich makes money.
This morning we completed what appears to be wave 5, and have begun the descent toward our first target of 824 .
38% = 824 SP-500 - 96 points
50% = 794 SP-500 - 126 points
68% = 764 SP-500 - 156 points
Key to our objective will be breaking the bottom trend line that has stood since March 23d.
The Ichimoku also requires breaking below the Kumo, and that too lies in the area of 900 to 890.
Pivot Points are computer generated buy and sell programs. They play a large role in the turning points of the market.
Today's Pivot Points are set as follows:
R2 = 930.543
R1 = 925.037
PP = 914.773
S1 = 909.267
S2 = 899.003
S3 = 893.497
We bumped off the top resistance R2 immediately after the open this morning with a peak of 929.40
At this moment, while I'm writing this morning update we have been bouncing off the first support level S1. It may be ambitious, but I hope we can break the third support level today, and put this Bull market to rest. It would not be impossible, yesterday we blew though R3, and kept on going so it might happen for us Bears today.
So far the MACD and stochastic are looking very good for us.
I'm feeling comfortable with the technical indicators as the Tenkan/Kijun have crossed sharply in the M1,M5,and M10 charts.
Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.
Posted by Robert Campbell at 08:40