No, it's not what you think. ED means ending diagonal, and ending diagonal means sharp selloff ahead. It appears that my sub-960 (on SPX) scenario will play out! Be very careful for a strong selloff in the next few days.
The chart above is the 1h /NQ (NASDAQ futures) chart. I'm posting it instead of SPX because the ED is excellent. Notice that the 5th wave in the rally from 1350 has unfolded as a picture perfect ending diagonal: it was super choppy, with each subwave in the abc structure. You can search my blog for other examples of these patterns, and you'll see that they all ended with sharp selloffs (at least on the short term).
2 comments:
excellent call ...is that it for the fall or much more to come?
I'm hoping for more. I'm seeing lots of people talking about the market needing a correction at this point. That worries me... but on the other hand, we had some nice distribution last week. So that tells me either the selloff continues very sharply, or we rebound to new highs. I doubt we'll see a slow dribble down.
Post a Comment