here is today's wave chart for the e minis. I think we just completed the second down wave of the day, a longer and deeper wave than the first down wave. It ended in a selling climax (red arrows) but because it was longer than the previous wave I think the market will rally for about an hour and then make a low pretty close to the low end of the range estimate at 775 (blue rectangle). Resistance is currently at the midpoint of the last rally (purple dotted line). A rally from 778 that is as big as the earlier rally today would carry the market up to 787 or so (purple rectangles).Once this reaction is complete I expect the market to rally to 805. My best guess is that level will not be reached today, but we should see it early tomorrow.
Carl,
ReplyDeleteDon't ya think we need more downside(like your 50-75 point prediction)to release some of the euphoria going on with the upside?