Thursday, March 19, 2009

Wave chart at 12 pm

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.

1 comment:

Anonymous said...

Don't ya think we need more downside(like your 50-75 point prediction)to release some of the euphoria going on with the upside?