DDF predicted the Bullish bias today. The forks and Linear Regression told the same story.
I'm sure all the super computer algorithms have calculated this area as either a bull or bear breaking point. The bots are all waiting for better then even odds before selling through 1040.
My indicators are turning Bullish for the short term. By the way I put that red oval target on this chart three weeks ago, while other blogs were bullish. I think there was even some talk of new highs on one blog while, begging for money and demanding donations. LOL. I thought the idea was to make money trading...
My brain still sees EW patterns, but I believe Elliott Wave is out of date. Today well over 90% of the trades are done by computer programs similar, but far more complex than the studies I present.
The fact is human emotion is no longer a factor. The only thing that links the market to human emotion is that algorithms they use; have been based on previous patterns from an era when the floor of the stock exchange was where the majority of trades were made. These algorithms may still reflect some of that emotion. But now days it's one big firm against the others. This seems obvious when the DOW can drop 1000 points and then pop back up in less time than it takes to eat lunch. So why did drop to a predictable low? It's because the formulas use Fibonacci ratios, linear regression, moving averages and a slue of other ideas.
Serendipity - Pedram just sent this link while I was editing this commentary.
You have got to listen to this pit feed during the crash
By the way you will hear him say there is no trading in the pit.
The other problem with Elliott Wave is that we never know until it's too late what the count is. Look at where we are now. Some are saying this is wave 3 others are saying it's been a Zig Zag correction off the top, and then there's one guy who thinks the market is just getting warmed up claiming everyone else has the grand super cycle confused. Give me a break.
But it hard to change, so I put numbers on the chart. Mine probably don't agree with anyone else, but it really doesn't matter, does it? Just keep an eye on the green fork.
DDF has a Bullish Bias
Analysis presented on this Blog has only informational, and educational purpose, and does not represent a proposal for buying or selling currency contracts.