Monday, February 3, 2014

E-W count for a top at 1850

It certainly looks like the Yen is calling it a day for the bull market.

Here's a wave count for the entire rally since SPX 1266 as an ending-diagonal, with legs in triplets.

SPX giant E-D since 1266 low

Good luck out there -- a cold wind is blowing.


Bryan Franco said...

If one calls the upwardly contracting triangle from May to October a Wave 4 correction, then the decline from August 2nd to August 28th would be the smallest (barely) of the five legs. Isn't that not supposed to be the case?

Christian Gustafson said...

That part of the tape is a 5-wave C of 3, Bryan.

Serious technical damage from today's rout and Yen breakout put into question any idea of new highs. Whose turn is it to announce a new liquidity facility? Eurobonds?

Bryan Franco said...

still, doesn't the 3rd of those 5 legs take place from August 2nd to August 28th? If that is the 3rd leg, it can't be the smallest, right?

T.Berry said...

soooo does today officially take your 1870 call off the table CG? i'd hate to dump half now but will and buyem' back 100 or so points lower. thx

Bryan Franco said...

Never mind i gotcha.. perfect c wave within 3. The shortest leg is not the 3rd leg in your drawing, my bad

Bicycle said...


then 2250 in a matter of months