2012-05-18

Will 1293 Hold? - EW Market Talk on EliteTrader

Quote from ScalperJoe:  Yes, it does seem the S&P is heading for flatline of 1,257 for the year.  However, would you change your analysis of the pending bear market if the S&P held above 1,293 Wave [1] top and reversed back up?  In other words, at what point does the "ABC" correction of Wave [IV] convert into a Wave 3 collapse?

ScalperJoe - Thanks for the feedback.  It could be heading to 1257 because of current downward momentum.  About the question whether 1293 will hold, I would bet that it could be breached tomorrow (Friday) morning right at openning.  Why do I make this speculation?  Because of today's solid long black candle with high volume.  If we don't have a strong intervention or super good news tomorrow, the wave count should be staying the same direction.  About the question when the "ABC" scenario should be voided, I would still say that the high of 10/27/2011 (i.e., 1292.66) is the key observation point.

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