Professor’s Comments March 13, 2020
Posted by OMS at March 13th, 2020
Today’s early bounce in the futures had to happen. Yesterday and Wednesday were 90 percent+ down volume days. If the market doesn’t finish higher today, Monday could be a really bad day.
From a wave count perspective, yesterday was likely the completion of Wave 3 of Major Wave 3 down. If this analysis is correct, then today’s bounce is either Wave 4 of Major Wave 3 down….or the start of Major Wave 4 up. Because yesterday’s low exceeded my target low of 21,750, I have to favor (slightly) the first scenario. In other words, once today’s bounce completes, I would expect a re-test of yesterday’s low.
If I’m wrong and Major Wave 4 is starting, the Dow should carry to the 24,500-25,000 level, before Wave 5 drops the Dow below 20,000.
I’ll have more this weekend in the WSR.
Stay relaxed by only doing scalp trades. No holding overnight…yet.
That’s what I’m doing,
h
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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Category: Professor's Comments