Professor’s Comments – Before the Open 6/10/2022

Posted by OMS  at June 10th, 2022

Yesterday’s early market action looked like it was part of the developing triangle for sub-wave 4 of Wave C of Wave 2 up.  However, all that changed later in the day when the Dow broke below key support levels and continued lower. By doing this, the Dow and its sister indexes have increased the odds significantly that Wave 2 up is complete, and Wave 3 down is starting.

In my earlier comments I talked about the possibility of a major market turn occurring within 2-days of 7 June. After watching yesterday’s action, with prices breaking below the starting point of the triangle, any bullish scenario based on the triangle has become invalid, meaning that Wave 2 up has truncated.

Because of this, I will now start looking to establish positions in inverse index ETFs.  I’ll start by doing some scalping and then holding a few of these positions as Red Arrows begin to appear on the longer term bars.

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Not sure of the terminology we use? Check out these articles

The Hockey Stick Pattern
The Creation of Waves and Trends
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