Tuesday, January 20, 2009

Or maybe we finished Wave 1...

Maybe we finished wave 1 of 5 and have not started wave 2. The reason I say that is because SPY had an satisfactory retrace of wave 2. It did not quite make it to the fib area that it is suppose to according to ewave theory.
But if what we thought was wave 2 was in reality wave 4 of a five wave structure that would make up wave 1...then it starts to look right. You can see above that wave 4 retraced back up to a satisfactory fib level.
This means that wave 2 of 5 has not started and we should still see the rally in the following days/weeks up to the 89 area if todays low was the end of wave 1.


1 comments:

Thomas said...

Hi glad to find you at stocktock! Your view really says 'hello'
Also, I trade the SPY puts and the emini some.
Sooo, thanks and I'll be lurking around here.
TJ