So far so good

So far the market seems to be trading as I expected. Once the RUT breaks below 420, I believe we will have a sharp correction to at least 380, but if my longer term analysis is correct, we should break to new bear market lows (perhaps very quickly to flip sentiment back to super-bearish).

Notice that price perfectly touched the top of the ending diagonal and is starting to pullback. Normally, once the lower trendline is breached, price will start to fall rapidly. I will look to close part of my short positions around 380, but I think we could head to new lows.


Luke said...

Interesting analysis of the S & P 500. 99% of Elliot Wavers are now positive. It would be nice to see that your analysis is correct.

Luke said...

Instead of "positive" I should have said "bullish".

Narayana said...

That's part of the reason I think we'll make new lows. It sure isn't easy to stick with an opinion when the mkt makes new highs day after day, though ;)