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


Tuesday, 10 December 2013

10 Dec 2013

Yesterdays corrective process had not ended based on todays move.  That said, I think that prices for the SPX is still on its way upwards.

Main-Trend: DOWN
Short-Term: UP


  1. Hi MP, could you explain a little about why the corrective process still not ending yet would mean SPX on its way upwards. Thanks

  2. Characteristics of a corrective process is if prices:
    -make overlapping patterns
    -goes sideways
    -makes 3 waves repeatedly
    -indicators accelerate without prices cooperating (usually means a reset).

  3. The impulsive move of SPX down, if forming a C leg, what else you would watch to confirm it. Thanks

  4. you would need an impulsive move up to show that Wave C is done and that a new trend is following. If you get a 3 wave up (Corrective) this means there will be more down side.

  5. Thanks. It seems that the leg C, if impulsive, still has a wave 5 down. Am I correct

  6. Yes, 1, 3 5, and A, C all have a possible 5 wave structure. A and C can also have a 3 wave structure. The only time 12345 have a 3 wave structure is if its on an ending diagonal.