quick SPY update - first touch of SPY 111.26 on intraday basis will put wave A daily on the map. That might produce very strong intraday/few days bounce (similar to one on February 1st – exactly when wave 4 was "printed" intraday and then gone by higher close)…(BTW – Members Site's benefits now include free real time alerts for Trade Guild's proprietary indicator "3C" – all for just $15 per month. Shall anyone be interested in more detailed and frequent updates with individual stock ideas Trade Guild has $50 per month subscription – for details go here )
Posted by DavidDT at 5/16/2010 08:07:00 PM
Today SPY's 111.26 and corresponding $SPX's 1110.88 were hit intraday and surely bounce emerged…but definitely not the kind of the bounce I was expecting. Closing prices are above aforementioned marls for wave A on daily to be put on the map, granted that this is an OpEx week I see no better scenario as move slightly down tomorrow, close below needed levels and burst up on Friday.
Ideal close for $SPX tomorrow would be below candle market with blue arrow and above TDST at around 1105.60
I wish I could say that 10 minutes D-wave (which was quite accurate lately – even counting "flash crash…on closing basis) supports my theory of "below 1110.88 and above 1105.60", but it clearly points to 1070sh as wave 5 destination.
This is NOT an easy market to trade right now – try not to initiate new big positions in any direction until "below 1110.88 and above 1105.60" is resolved. From my POV there is nothing wrong with 1070 on 10m wave – wave A on daily may be continue down as low as 1056.74 (after today's muted bounce at key level for A I am less inclined to play bounce, but rather to wait for reasonable short entry. But again – I am trading very lightly due to multitude of events that happened during last few weeks)
