State of the NAS / S&P/ DJIA
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Started by kris - July 14, 2022, 10 p.m.

It's so easy a caveman can do it ...    :

The symmetry in the NAS has been uncanny, will it continue? More on that below.

Not to be outdone, the symmetry here in the S&P has been a thing of beauty as well

The Dow went from the 50 retrace high to a 786 retrace low, almost to the penny. The 786 often marks the end of a move be it up or down. Which leads me to believe that:

* the indexes may have completed a wave 2 of 5 as indicated on the ES chart (no I'm not an e-waver but I look for structure in the markets)

* if the 2 of 5 has completed then the 07/13 NAS low has to hold (last # 10 on the NAS chart)

* if a wave 3 were to start we will know soon, wave 3s are fast, furious and relentless

* if no wave 3 then we may see an AB/CD reaction to the upside

* for these scenarios to come to fruition the 07/13-14 lows have to hold and we need to clear the 07/08 highs sooner rather than later

If any of the above scenario(s) come to play out I'll look for (initial?) resistance levels as follows:

NAS = 12585

S&P =  4086


Trade safe everybody !



Comments
By metmike - July 15, 2022, 1:41 a.m.
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Thanks much kris!

By kris - July 21, 2022, 9:09 p.m.
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Still on schedule ... !?!!!




By gedigan - July 30, 2022, 12:32 a.m.
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Kris, I know absolutely nothing about e-waves. In an earlier post I mentioned NQ / ES spread (as opposed ES / NQ). Below my Spread & Monthly update w/ weekly fib overlay. Typically a hing fib 127% we'll get a correction.

Trade well everyone !!

NQ  Monthly




By metmike - July 30, 2022, 1:43 a.m.
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thanks much gedigan!

By gedigan - July 30, 2022, 8:56 a.m.
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your welcome Mike

as always, trade what you see NOT what you hear over the news. Fear sales

"The market always tells you what to do. It tells you: Get in. Get out. Move your stop. Close out. Stay neutral. Wait for a better chance. All these things the market is continually impressing upon you, and you must get into the frame of mind where you are in reality taking your orders from the action of the market itself--- from the tape" ... Richard D. Wyckoff

Be kind, Always.

By kris - July 31, 2022, 12:11 a.m.
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Thanks for the charts Gedigan, very informative as always. I don't do ewaves either but I do look for structure in the markets, i.e,; 3 waves/5 waves/ AB=CD etcetera. I do look for inflection points though, if you look for some of my earlier posts you'll know what I mean by that.

Like you I expect a reaction to the downside here since we have reached the first objective of the 1-2-3 low at the 1.618 extension on the ES and the other two majors. It shouldn't be a big reaction if indeed we are in a wave3 to the upside (which I think we are). Time will tell ....

My ideal scenario is that the current up wave will constitute a wave 2 reaction and will lead to a wave 3 down this fall, one can salivate at that scenario ....

I have resistance on the ES @ 4259 and then (gulp) 4465 .... ?!?

Be well and trade safe  !