The SPX came soooo close to the red wave 3 target at 3228.6. Actual was 3227.8 (missed by 0.8 pts).
We are now in (or have just finished) red wave 4.
The next move is up for Red wave 5 (which finishes the bigger yellow wave 5) and should take place over the holidays.
Our next bullish target is to finish Red wave 5, which would complete Yellow wave 5, (of Blue wave 3) at about 3238.2 as calculated.
What a nice extended wave 3!
Now for an interesting Christmas present...
On Dec 26th at 12:13 am EST we will have a solar eclipse. Those of us here in the USA obviously won't be able see it.
Also as a bonus we have a New Moon at 1:16 am EST. This gives us 2 interesting timing events to start the market open on Dec 26.
This should give us another strong bullish move up, as shown in the chart.
This will start the last push up for wave 5 (red) of 5 (yellow) of 3 (blue) in a while.
We are getting very close to the top of this run up since the October lows...
We will count this last push up towards 3238 zone as the high for Blue wave 3 in the SPX index for a couple of months.
We expect the Blue wave 4 to chop down and sideways beginning early in Jan 2020.
This wave 4 down will surprise a lot of new traders that have been buying the dips
all year (2019), wiping out months of easy bullish work in just a few weeks.
What the news correlation will be is anybody's guess...
We trade based on price and wave counts and watch later for "news that seems to fit".
We would initially expect the blue wave 4 price zone target to be near the previous yellow waves 3 and 4 - around 3100 +/- 30 points.
Also of interest is the VIX that recently seems to be elevated a bit, even as we watch the markets go up....
hmmm... VIX should be going down as the market goes up...divergence sneaking in? This fits well with the red 5th wave.
We will soon be near a major pivot high. (Although not the top of the market, as we still have more 4-5, 4-5,4-5 waves to go in the next year or two)
It would be prudent to buy some protection (a bit cheaper) as we approach the 3238 zone
We are long now, but looking to short soon.
Merry Christmas!
Old Fart
We are now in (or have just finished) red wave 4.
The next move is up for Red wave 5 (which finishes the bigger yellow wave 5) and should take place over the holidays.
Our next bullish target is to finish Red wave 5, which would complete Yellow wave 5, (of Blue wave 3) at about 3238.2 as calculated.
What a nice extended wave 3!
Now for an interesting Christmas present...
On Dec 26th at 12:13 am EST we will have a solar eclipse. Those of us here in the USA obviously won't be able see it.
Also as a bonus we have a New Moon at 1:16 am EST. This gives us 2 interesting timing events to start the market open on Dec 26.
This should give us another strong bullish move up, as shown in the chart.
This will start the last push up for wave 5 (red) of 5 (yellow) of 3 (blue) in a while.
We are getting very close to the top of this run up since the October lows...
We will count this last push up towards 3238 zone as the high for Blue wave 3 in the SPX index for a couple of months.
We expect the Blue wave 4 to chop down and sideways beginning early in Jan 2020.
This wave 4 down will surprise a lot of new traders that have been buying the dips
all year (2019), wiping out months of easy bullish work in just a few weeks.
What the news correlation will be is anybody's guess...
We trade based on price and wave counts and watch later for "news that seems to fit".
We would initially expect the blue wave 4 price zone target to be near the previous yellow waves 3 and 4 - around 3100 +/- 30 points.
Also of interest is the VIX that recently seems to be elevated a bit, even as we watch the markets go up....
hmmm... VIX should be going down as the market goes up...divergence sneaking in? This fits well with the red 5th wave.
We will soon be near a major pivot high. (Although not the top of the market, as we still have more 4-5, 4-5,4-5 waves to go in the next year or two)
It would be prudent to buy some protection (a bit cheaper) as we approach the 3238 zone
We are long now, but looking to short soon.
Merry Christmas!
Old Fart