I'd like to thank everyone for their patience as I spend the weekend re-installing my computer's operating system and couldn't produce the weekly edition of Heard On The Street. In an attempt to catch up, tonight's update will contain the charts of other markets as well as the S&P but will not contain much of commentary.
S&P
BULLISH
The previous three charts show the bullish scenario and termination point of w.(C) at 1346.25 or 1381.5 or at the .786 retracement of 1389.75. At the 60 min chart level, w.iv circle is unfolding in a double three with Fibonacci support surrounding 1314.25-1314.
BEARISH
OIL
Oil has completed w.(3) and w.(4) should unfold as a sharp correction according to the principle of alternation, i.e. as w.(2) was sideways expanded flat. The market should should find support at the .236 or .382 retracement of w.(3).... the most common of .382 that also corresponds to the previous fourth wave of one lesser degree.
GOLD
Best of Trading
Is it possible to keep your count on oil and see a correction to 0.612 or bit lower ?
ReplyDeleteMGD- Oil can decline to 78.9 and not violate any Elliot rules or the count. However, a decline of such magnitude would most likely question the preferred count... so would a .618 retracement. Also, keep in mind that there are also time relationships that were not discussed. It's also highly unlikely that a deep correction would meet any time relationships btw waves (1) and (2).
ReplyDeleteHope this helps