Tuesday, September 11, 2012

Three Peaks and a Domed House point 23?

The decline late today was either a minor wave 2 or the rest of a larger wave 4, labeled on the chart.

Tomorrow, Germany probably gets the go-ahead to fund the European debt ponzi a little longer.  We gap up a few handles, but since the FOMC is the main event this week, the gains are limited -- not a 30-handle /ES day.

If we're going to drop all the way back to 1395 by Friday, for the 3PDH, then I'd like to propose that the Fed news actually gives us the wave 3 of the move.  Wave 1 down would come from a UE report of 400K+ Thursday morning.  Thursday could be a 40-handle selloff.

1395 Friday and I'm crazy enough to buy that dip.

1448 only 15 pts away
Decline to 10/3 and 3PDH labels
C down targets updated for a 1448 top

2 comments:

Rajeev Shah said...

Touched the weekly bollinger band. Last time it did that was on 2-May, which was a high. Is it done? What would be the trigger?

Bicycle said...

Hope everyone saw Steve's comment on ZH tonight about QE and oil:

http://www.zerohedge.com/news/what-does-4-trillion-fed-balance-sheet-mean-gold-and-oil#comment-2793129

Geez, can this guy bring the doom.