Target 846

Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.

I changed my count

I have changed my count. If this is correct we should gap down on the third wave of C.


Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.

Morning Update Tuesday

The wave ii correction is right on track



Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.

It appears that the Euro could pull the SPX down today



Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.

The market is falling nicely within the Andrews' Pitchfork. I added a cyclical study to this chart which may help us time the next reversal. On a closer scale this next chart also indicates that the market is contained withing the immediate pitchfork.
On a much grander scale I've drawn the Andrews' Pitchfork for the P2 accent with the weekly Ichimoku. As you can see the Kumo is acting as a major resistance to the price, and the price is well withing the limits of the channel. Notice that the Kumo contains the target for wave C. It is unlikely that the top of the Kumo will be breached.





Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.

G.S. Bank Admits Unfairly Manipulating Markets?

I had to laugh at this story about Sergey Aleynikov, an ex-Goldman Sachs computer programmer, who was arrested and charged in a criminal complaint for stealing the trading software of Goldman Sachs. Assistant U.S. Attorney Joseph Facciponti told a federal judge that Aleynikov’s alleged theft poses a risk to U.S. markets.

Why is this a risk to the U.S. Markets?

Here is what the Assistant U.S. Attorney told the Federal Judge.

“The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” Facciponti said, according to a recording of the hearing made public today. “The copy in Germany is still out there, and we at this time do not know who else has access to it.”

The prosecutor added, “Once it is out there, anybody will be able to use this, and their market share will be adversely affected.”

Oh boo hoo. What's fair and not a threat to Goldman Sachs is a "unfair" if someone else should happen to use it! Where do these A-- ----s get off?

Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.

This top chart shows the most appropriate Andrews' Pitchfork. This bottom trend line is the line to break. We will most likely bounce off it one more time.
I expect a correction on Monday, and then another sharp decline to 876 area. Since it is a wave ii correction there is a possibility that the market could retrace 61.8% to the 920 area, but I doubt it will. The M60 Ichimoku Chart shows resistance at 910 to 920. The momentum appears strong and therefore I'm not expecting much from wave ii.

Tenkan-sen has crossed below Kijun-sen, and if the Kumo is violated it will offer no resistance until the 850-860 area. Please notice that the Daily chart rarely flirts back and forth. This is a major cross over, and all the other time periods are supporting a bear market. I just don't see this turning back right now. Even though we dropped sharply on Thursday the market does not appear to be grossly oversold. In fact the price on many time periods is just below the Kumo.

Once wave ii corrects this should gain momentum. We will have to watch the waves in order to find a bottom, but for now it looks like the bears are in charge.


EUR/USD has a lot of cloud cover and bearish Tenkan-sen/ Kijun-sen crossovers to deal with. At the moment it is attempting the make an advance but once it starts to fall I see the next level of support about 200 pips below. This seems to be coordinating nicely with the SPX dropping sharply. As a reference the Euro was at 1.4000 when the NYSE closed on Thursday.




Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.

Gann Fan

I've been experimenting with Gann Theory, and I would really appreciate some help finding a Blog that uses Gann.

The chart above was initiated back on June 17 and I think that the Gann Fan lines possibly have merit. If any one has any info about a Blog that uses Gann Theory I would really appreciate some help.

Don't get me wrong I'm a dyed in the wool Elliottitian, but I am open to finding other tools that work. Andrews' Pitchfork is high on my list of spectacular tools.

I'm still not sure this is something that can be expected but check it out. The crossing of the center lines of two pitchforks seem to be where the price also crosses. So far it’s 2 for 2. I'm going to be watching this phenomenon to see what percent of likelihood there is to this.








Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.

Midday Thursday

I'm still learning about Andrews' Pitchfork and have made a few observations as noted on the chart.

I'm confident we are in Minor C and expect it to follow the channel created by the pitchfork.

The Ichimoku M60 chart is showing resistance near 888.


Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.

There are three sets of Andrews' Pitchfork in the chart above. There was a breakout from the upward fork happened on Tuesday. I started a downward fork this morning.

The price is riding the top of that fork as well as the top of the fork I started from 956.23 which should contain the entire Intermediate B wave.

I've been using Andrews' Pitchfork with the Euro with great success. It seems to be working well with the SPX as well. Beow is the EUR/USD with pitchforks.

I'm still looking for Minor C, but it better happen soon. I would be happier if it were to begin with a decisive reversal. Maybe tomorrow...




Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.

Morning Update Wednesday

It looked perfect last night, but the market had something else in mind. This upward channel seems to be containing the move so I'm looking for a possible bounce off the top trendline which would complete (Minor B). The current peak for today is pennies from the 50% retrace and 61.8% is about 937.64.

The Euro has been leading this rally, but the M5 and M15 Ichimoku charts are beginning to weaken. This peak coincides with the top of the Weekly Kumo in the EUR/USD. This is a very strong line of resistance. So changes are good both markets will turn down here.

Dang, I've got to go to work, and make money the old fashioned way.




Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.