Professor’s Comments September 13, 2022
Posted by OMS at September 13th, 2022
Before I left home, I said the market would likely rally into 15 September +/- a day, which is a Fibonacci turn date. So far, that prediction has proved accurate. Today’s rally on the Dow carried to the 32,505 level, before pulling back to close at 32,381. If today’s rally did not complete wave ‘c’ of sub-wave 2 up, one more rally to about 32,680 to 32,800 should do the trick. If the Dow retraces to the 32,680 level, it would be a 50 percent retracement of Wave 1 down. If the Dow does not stop at 32,680, it will likely move toward the 33,000 level, which is a 0.62 retracement of Wave 1 down.
Possible stopping level for the S&P is near 4150, which is a 0.62 percent retracement of Wave 1. Similar stopping points for the NASDAQ and RUT are near the 12,850 and 1,921 levels.
Bear market rallies are often swift and strong. They are fueled by short covering, which takes them higher than anticipated. However, this doesn’t change anything with the underlying wave structure, which remains bearish. Once the current rally completes, the markets will begin to move under their Wave 1 lows (17 June lows) with the Dow testing the 26,500 to 28,000 levels.
My trip to Cornwall is nearing completion. We head back to London tomorrow and fly out on Wednesday morning. Once I get home, I’ll update all the Lists and prepare my regular Comments on Thursday morning.
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
FAQ
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Category: Professor's Comments