With so many subdivisions/ extensions happening within waves, possibilities are many and that should keep us prepared for any kind of surprises. Till the prices dictate & say they have bottomed out, no Govt intervention can bring in lasting bottom .
Presently market has given two clear boundaries..i.e..3100 to 3650.Trade it.
With so much uncertainity on the fundamentals, the only way to make money in the markets is to trade these choppy movements with EW & TA.
No Buy signal has come in the DAILY. So bearish undertone is very much alive. However, after steep fall, buying emerges owing to short covering or value buying or any other reasons. And Selling comes after steep rises too owing to bull unwinding or fund selling..Whatever may be the reasons, Market gives you the kind of spreads never seen before.
If you are calm, have a plan ready, move in. Or invest on every dips and harvest on every rises.
I should trade longs above 3300 and
trade shorts below 3200.
Presently market has given two clear boundaries..i.e..3100 to 3650.Trade it.
With so much uncertainity on the fundamentals, the only way to make money in the markets is to trade these choppy movements with EW & TA.
No Buy signal has come in the DAILY. So bearish undertone is very much alive. However, after steep fall, buying emerges owing to short covering or value buying or any other reasons. And Selling comes after steep rises too owing to bull unwinding or fund selling..Whatever may be the reasons, Market gives you the kind of spreads never seen before.
If you are calm, have a plan ready, move in. Or invest on every dips and harvest on every rises.
I should trade longs above 3300 and
trade shorts below 3200.
I know only one thing : this market is a sell on rallies. The violent pullback towards the 20 period average (yellow circle) failed and we got thrown down to 3100 today only to recover at the close. In this process, we have formed a new lower low. Now, any pullback from here will be weak and is going to get attacked like hell and that will give a lower high thus completing our LL-LH pair and then we are ready to go down again.
my elliott wave analysis chart.
the expected downmove did take place as shown with given tgts.
iam yet to mark C-3-(4) and C-3-(5) completion.
after which a tradeable bounce will occur i.e., C-4 which may go upto 3500-3600 etc followed by C-5 that will test recent bottom or go lower(tgts yet to be calculated), are pending.
this will complete the big A structure.
Todays price action adds one more member to the elite group of hammers ! Thanks to volatility, we already have four occasions recently when the markets tanked in the morning only to recover at the close. But if you see the larger picture, such intraday pullbacks have failed to sustain even for a few days. That is, if you had bought on one of these *hammer* days and held on, hoping to sell a few days later, you would have ended up with a loss. Take a look at the above chart. 
3200 will not hold tomorrow. At the time of this post, the S&P is at 949; down 48 points. WTF!
The speed lines are quite clear..I connected 4000 - 3198 and see the result, we were to be out of woods over 3648 , alas the bears out again and the bulls just running off.. support was around 3280 level and deeper down at 3050-3000. Is it testing the lows again , or real fears of recession/poor earnings/redemption pressures which is leading to sell offs on a daily basis...I feel in bear markets when nothing helps and there is desperation/despair...we may be near the bottoms..keep cheery picking partially some stocks which you would like to have and carry for 1-2 years..Do keep in mind the rallies in bear markets are fast furious and dont get trapped into buying the highs..trade carefully..cheers.
The speed lines are quite clear..I connected 4000 - 3198 and see the result, we were to be out of woods over 3648 , alas the bears out again and the bulls just running off.. support was around 3280 level and deeper down at 3050-3000. Is it testing the lows again , or real fears of recession/poor earnings/redemption pressures which is leading to sell offs on a daily basis...I feel in bear markets when nothing helps and there is desperation/despair...we may be near the bottoms..keep cheery picking partially some stocks which you would like to have and carry for 1-2 years..Do keep in mind the rallies in bear markets are fast furious and dont get trapped into buying the highs..trade carefully..cheers.
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