Sizing Up the Move off the Lows
The question of whether the market is at a low is not an easy one to answer. On Monday the S&P 500 descended to the low region we had previously suggested as a target, and then it bounced for a nice 15-point trade. Still, we have not been given a clean five-wave upward move on which to rely.
E-Mini S&P 500 Futures -- 60-Minute Chart Source: TradeStation View Chart » View in New Window »At this time, there are several ways to assess the move off the lows in the E-mini S&P futures. One is to call it a leading diagonal, and the other is to characterize it as a wave iv in a c-wave of purple wave 4. Leading diagonals do retrace quite deeply -- so, if the bottom is indeed in, it would not surprise me to see the S&P test 1333 once again before it moves up strongly. But, as I mentioned today, the S&P needs to move above 1348.50 in a powerful fashion in order for us to be more confident about a bottom being in place. At that point, we'd be able to return to a target of around 1400....227 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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