“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC

PAYPAL

Wednesday 24 October 2012

24 Oct 2012

Lower low and possibly an ending 5th wave for the SPX.  Looking for a rally on the stoch. The Daily chart shows divergence and stoch still pointing down.  60min chart shows a slight lower low which can be enough for a full wave count for 5th but this can turn to a totally different wave count sooner than later, so we want to follow the indicators.  There is a risk of a rally so I would stay out and watch until the morning to see if I would go short again or not.

Possible Bullish EW count to finally end the move if we rally towards the presidential election due in a few weeks.
A drop across the 400 range will trigger its Sell Signal.
 

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