SPX made a LH and LL that is a negative but the market closed up positive. Range was only 9 points. SPX made the high of the day at 6.45 and low of the day at 7.45. It rallied rest of the day and closed near the high of the day. That is very close to what I said in my blog yesterday. What happened today is little rare in that the closing is not in sync with lower high and lower low. The odds favor a HH tomorrow.
I only have one chart. It is hourly spx. I have enclosed what I believe is 1 of 1 and 1 of 5 in orange circles. That leads me to 2 things a) spx has 14 hours or approximately 2 more days left in the decline and b) Looking at the black arrow spx should get a fake rally attempt and a sharp drop before 2 of 5 is over. After that spx should get about 9 days of 3 of 5. This current decline should take us to 1203 and the subsequent rally to 1290. I will re calibrate after that. Ofcourse a new high immediately and its a new ball game. I do believe we will get beyond 1287.
I rarely do I do EW like I have done today. I am usually channels and GANN and my own proprietary indicators. None of my indicators have turned bearish and after the amount of time they have been bullish I figured I better check EW and see if I am missing something. Nah! everything is cool. Also many of the blogs are doing EW without time element consideration I wanted to to explore the impact of time .
I am short playing the 2 and plan to cover if we make a new high or around 1203. There is a lot of juice that can be extracted out of this tax legislation quarrel thats going on and with option expiration next week the markets may still give some action.
Thanks for reading my blog and offering me encouragement.