Dow in C leg of ABC Correction: Bounce After or Rejection at TL?
Updated
Chart says all. Looks quite Bearish but no capitulation as of yet. C waves tend to be fierce and furious. See what it does when Gap fills from 9/04.
Bulls will likely return for another crack at ATH if they can hold the line near 26200. SPX should find support near 2900, at least in this first downdraft. Second support at 2860; breakdown through these levels will likely lead to panic selling and capitulation down to August prices or lower. It is possible a Bear Market is beginning, but too soon to tell.
Have to see if an ATH can be developed by EOY. Trade day-by-day now and hold ur hand close! Rejection from the wedge TL on a bounce could lead to a fully developed 5-wave Elliott impulse downtrend. Failure in China will certainly precipitate this kind of Bearishness.
RUT is getting killed and shows greatest weakness. Expect Flight to Quality to boost US 30 more than NQ, RUT. SPY has been most Bullish of these and might suffer less.
Just an idea, not advice; trade at your own risk!
Bulls will likely return for another crack at ATH if they can hold the line near 26200. SPX should find support near 2900, at least in this first downdraft. Second support at 2860; breakdown through these levels will likely lead to panic selling and capitulation down to August prices or lower. It is possible a Bear Market is beginning, but too soon to tell.
Have to see if an ATH can be developed by EOY. Trade day-by-day now and hold ur hand close! Rejection from the wedge TL on a bounce could lead to a fully developed 5-wave Elliott impulse downtrend. Failure in China will certainly precipitate this kind of Bearishness.
RUT is getting killed and shows greatest weakness. Expect Flight to Quality to boost US 30 more than NQ, RUT. SPY has been most Bullish of these and might suffer less.
Just an idea, not advice; trade at your own risk!
Note
Cup and Handle is still evident; this idea is not entirely invalid yet, but breakdown past the breakout point will put an end to it. Handle should not exceed ~half of cup wall height. If it goes beyond 0.62 Fibo it's a broken Cup.Note
A Harmonic Butterfly pattern is evolving. This is a more powerful and compelling formation than Cup/Handle or H&S, which are more likely to be spurious. See my latest post; pattern projects Dow 24,224 by 29 October with subsequent rally to 27,716 by EOY. GLTA!Trade active
See related posts. Shorted into EOD trading Friday 10/11/19. Looks like exhaustion gap up and a shooting star Doji. See if we get an Abandoned Baby Monday!Always gratifying to see the chart fill in...!
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