At this point, market conditions indicate that a new intraday high (above October closing highs) may be very likely. The DJIA since the low on Oct. 24th have rallied past the.618 level cited on the Oct 24th update at 9715.
The system is still on sell as shown below but no new positions have been taken and I am flat. Fighting the short term trend means taking an opposite position to the trend. I choose to not take any position, therefore not fight the trend. Sometimes the best position is no position. At this point I am allowing the market to work its way into a position where I am more comfortable making a bet with my system rather than fight it.
Some of what I am looking for is illustrated in the chart below.
In the chart below, I have wave 1 from the Oct 24 low 166.07 points long. Wave 3 202.73 points long. Hypothetically, if wave 5 were to equal wave 1, that would take the DJIA to 9890. Additionally, I have chosen to label the rally from the Oct 24th low because of the MACD-hist on the chart below. Typically, the highest Macd-hist will be near the peak of a third wave of some degree or near the peak of an A wave (compared to the following C wave). This labeling of 5 waves up would allow for the new high as possibly suggested.
Good luck,
