Professor’s Comments August 31, 2015
Posted by OMS at August 31st, 2015
After looking at the Friday’s sideways trading on the major indexes, there is a possibility that wave 4 up has not completed and the Dow still needs one more leg higher of about 150-200 points.
Anytime I see sideways trading and narrow Bands near the end of the day, I have to allow for this possibility.
If Dow pops at the open on Monday, the decline that I have been expecting could start later that afternoon. The early rally does not have to happen, but as long as the Money Flow indicators remain positive, the possibility of another leg higher exists.
Wave 4s are always difficult to trade because of the many legs involved. And this particular wave 4 appears to have morphed into a 3-3-5 flat. In other words, the final wave of the flat or wave ‘c’ up should have 5 waves. Friday’s sideways trading could be a small wave 4 within wave ‘c’ up. If this is the case, the Dow could easily rally to 16,700+ level before the next major wave down begins.
I just wanted to give you a ’heads up’ on this potential rally, so you know that it doesn’t impact the larger overall wave count. I still believe the Dow is heading a lot lower.
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