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.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
