The S&P made a high right at the open on Thursday and then sold off quickly – only to rebound most of it.
I’m leaning towards this being a B-wave high that subdivides as a-b-c. I was hoping that b portion of the a-b-c would go a little bit further down before the c-wave, but looks like the market decided to go with an intermediary b-wave triangle before shooting up in the c-wave of B. either that or it began the next wave up.
I would like to see the 2342 region tested before we breakout towards 2400.
Meanwhile, both gold and silver are at new highs – our USLV position – that we have held onto for quite a while – more than 1 month – is up around $1,000 in unrealized gains.
The Russell has been the weakest. The overnight action between Feb 22 and Feb 33 was a clue that upside follow through would not happen. But right before the market opened – it rallied towards 1407 – so it made me hopeful, but of course hte market just reversed it very quickly. Next time the market spends too much time near 1400 overnight that should be a strong hint — even if it rallies in the minutes leading up to the open.
While ll other indices managed to stage a strong rally on Friday into the close, the Russell still showed signs of weakness. We took a loss on the Russell and are open to a C-wave drop – if it does happen, it would be a good buy entry.
Resistance is in the 5345 region for the Nasdaq.
The Dow nearly staged another all-time high into Friday’s close – after this morning when CNBC gave out alerts saying that the Dow was down 100+ points.
Last time’s S&P chart suggested a 3rd wave up over 2360 – which is what happened. Compare this below prediction with what actually happened with the chart above for S&P.
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