2 replies to this topic

[ogm]

Bonds, Dollar, Saudis, Inflation, Rate cut won't help, Economy is slowing, blah, blah, blah One after another. Doom & Gloom galore. ....... btw, couple pieces of economic data today. Jobless claims pretty low, Phily fed quite good.

[hiker]

hi OGM...you likely know where this EW desc. is taken from...do we need to sustain a move back above 1525 SPX major horizontal at this point to begin a move up in earnest? 2nd waves are ''reinforcement'' waves that seem to confirm the overall feeling of wave 1. In this example, those who suggested that more downside was coming during wave 1, will come back to those same people and say ''I told you so''. The other characteristic of 2nd waves is that the level of anxiety will generally be more acute than it was prior to beginning of wave 1, but now at higher price levels that were seen at the actual bottom. Because of this, retracements will tend to be deep. Technically, the tools mentioned above would be snapping back to what were the breakout areas that confirmed a possible change in direction in which took place in wave 1. All of this action is in spring board preparation from which 3rd waves begin. bears just love it when an entire day of upside price action is removed by the following day.... SPY is now below 152.46 Tues closing price, but let's see what Friday's close brings.

Edited by hiker, 20 September 2007 - 02:38 PM.

[ogm]

hi OGM...you likely know where this EW desc. is taken from...do we need to sustain a move back above 1525 SPX major horizontal at this point to begin a move up in earnest?

2nd waves are ''reinforcement'' waves that seem to confirm the overall feeling of wave 1. In this example, those who suggested that more downside was coming during wave 1, will come back to those same people and say ''I told you so''. The other characteristic of 2nd waves is that the level of anxiety will generally be more acute than it was prior to beginning of wave 1, but now at higher price levels that were seen at the actual bottom. Because of this, retracements will tend to be deep. Technically, the tools mentioned above would be snapping back to what were the breakout areas that confirmed a possible change in direction in which took place in wave 1. All of this action is in spring board preparation from which 3rd waves begin.

bears just love it when an entire day of upside price action is removed by the following day....

SPY is now below 152.46 Tues closing price, but let's see what Friday's close brings.

Sorry, I know nothing about EW.