Kudos to MMs

...sure...
...i posted a possible ending diagonal...
.... like a rising wedge....

....wave 5 ...if completed.... can go up and over the top trend line for "throw over" before breaking down...
.....if wave 5 is too weak.... then it can fail to even cross to the upper portion of the wedge.... or even fail to surpass wave 3 high
....if it breaks.... the downside target is the low of wave 2....
...hence.... the implication is quite great....for downside....

...sometimes... on a breakdown... it will first break the lower trendline... and then attempt a re-entry of the wedge.... which fails....
...edit... you can read about "ending diagonals" in the elliott literature...
Quote from nitro:
Can you explain something to me?
More...
 
...on an ending diagonal.... the first target is always the beginning of the wedge...
...which is the wave 2 low....

.... but it could go much lower than that if it is ending a wave series of high degree

... for example.... an ending diagonal occurred at the highs a year ago... and we have gone down one year already....
....because that one occurred as the 5th wave of the 5th series....

...having said that... i don't have access to long term data for the dollar....
....since the dollar has already been going down for several years.... i doubt this would end a very high degree series to the upside

Quote from nitro:
Why wouldn't the target be the low of 4?
More...
 
Thanks.


Quote fro
m elovemer:

...on an ending diagonal.... the first target is always the beginning of the wedge...
...which is the wave 2 low....

.... but it could go much lower than that if it is ending a wave series of high degree

... for example.... an ending diagonal occurred at the highs a year ago... and we have gone down one year already....
....because that one occurred as the 5th wave of the 5th series....

...having said that... i don't have access to long term data for the dollar....
....since the dollar has already been going down for several years.... i doubt this would end a very high degree series to the upside
More...
 
This is a wait and see market imo. Any trading in between SPX 842 and 870 is edgeless. Break outs/downs outside that range is worth taking, but I think it is more dangerous to sell breakdowns than to take breakouts. In other words, you want upside gamma. Obvious resistance 915ish to 920 SPX.

Keep an eye on commodity stocks and financials for confirmation.

nitro
 
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