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1/ Chart study from Dragon's Den.
A bit chaotic - several valid models near term. This one suggests an ABC corrective in progress and C up towards 2900 has started. Start with slight gap down that gets bought or runs immediately out of the gate.
A bit chaotic - several valid models near term. This one suggests an ABC corrective in progress and C up towards 2900 has started. Start with slight gap down that gets bought or runs immediately out of the gate.
2/ This one is probably the most bearish near term....but any new move lower probably won't last before we reverse and maybe look to fill gaps above.
3/ Another variation to the ABC on the low. This one could take it to 2780 as well with rally to follow. This one will struggle to fill upper gaps though.
4/ The most bullish outcome and what is looking more likely now...index is in ABC up since Dec low and C about to start. that being said, wave A had a lot of strength and is 3rd wave character, so C here should now be terminal and weak. Possible new highs but not by much.
5/ Patterns are always either 5 waves or 3. 5 waves impulse or channel. If they do not, they are 3. Each wave in a 5 wave impulse, 1-2-3-4-5, has unique and defining behavior or character.
6/ The nice thing about 3 wave patterns is that they are basically a subset of the 5. That means each leg of an ABC will have same character as waves 3-4-5, OR waves 1-2-3 of an impulse. The trick though is to place each in the right time frame too and this can be a challenge.
7/ The bigger picture....says ABC-X-ABC from 2009 almost complete. Rally from Dec is final C. It should be an abc up as well and with daily chart, Dec - Feb was 'a', Feb through May looks like 'b' now and that means one more up for 'c'.
8/ And even bigger. This outlook has NOT changed at all and don't expect it too. We just have to figure out when the giant B completes. Looked like it was done Dec but still ongoing. However, at best, only one more weak rally phase is likely.
9/ In summary, an ABC corrective since the May 13 low is possible....BUT based on higher time frames it could go a little further as it appears we may be in C of ABC from Dec low. Either way, a near term low and rally.
10/ Addendum....NKE fits the pattern of ABC up with C needed/ in progress.
11/ As does NFLX
12/ And GS....lots of stocks...
13/ Others like CAT have already broken down but are now in need of back test so still have reason to contribute to rally.
14/ While others like AMZN, they just look like they are still missing something.
