Saturday, July 28, 2018

Respect the harami! Let's visit the 200.

Thursday saw the inside-day harami candle on the SPX, a very important sign here.

Let's ease off the speed of the doom a little and propose one more bounce this week off the support at the 200 DMA, lower daily Bollinger band, and channel support at ~2699 on the S&P 500.  This can then retest and reject the old channel (8/8 or so) and finally crush the 200.

We can then complete a 5-wave impulse to the larger channel support -- the core channel of the rally -- into the end of August, giving us a wave two bounce up through September back to the 200 DMA, this time as resistance, precisely at the September 26 FOMC meeting and press conference.



christiangustafson said...

First! (activating the comments email feature)

Depriv said...

Sorry, I still think it's not the right time
This Spring would have been a perfect time to start a big crash, but this triangle messed it up. I expected some faster type of correction here

The good part is, that triangles are usually the last corrections (fourth waves) in an impulse, so now we have a good reference.

Maybe the top will be around the middle of Sept?