9 Oct 2013

Although we have not gotten our signal for a reversal,  I believe we are close to one.  Today the SPX put in a reversal candle and a black on at that.  We shall see how the markets react in the next few days when both sides sit down and talk face to face.  Either way we should look at a plan to exit our short position as our indicators are oversold on a daily basis.  Our 60min chart has not given any form of divergence for the upside but it doesn't have to.  Ideally though we would like to see a higher low on any timeframe first.  But lets not get ahead of ourselves....

Main-Trend: DOWN
Short-Term: DOWN

NOTE:  The thin red dotted line represents the possible B wave stops if we have an A=C (RED) scenario.  Todays move to the lower thin red line could be only a sub A wave of a B wave...