Watch This Level Like a Hawk
On Thursday morning I highlighted a chart of the E-mini S&P 500 futures on elliottwavetrader.net, pointing to the target of a potential wave 2. Well, the upper target was hit to the penny, and the market then reversed up in a third wave. Since this was the third wave within wave iii, which is the strongest part of a market move, the S&P gave us a very nice 14-point trade in the regular session Thursday.
Again, our Fibonacci Pinball gave us excellent targets and expectations during this move up. When we see a strong extension up for wave 3 of iii, the most likely target is the 1.00 or 1.236 extension. In very strong moves, we target the latter, and we did just that Thursday. So now we'll to see a consolidation/pullback for a wave 4 of wave iii. Based on our Fibonacci Pinball, when the market hits the 1.236 extension for wave 3, a wave 4 will likely target the 0.764 extension....193 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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