Professor’s Comments Update 2/24/20
Posted by OMS at February 24th, 2020
Stock futures are down big this morning on concerns that the corona virus is spreading. The two Bullish scenarios I talked about in this weekend’s WSR are in danger of being blown out of the water if the Dow trades below 28,700 and the SPX below 3270. These are the levels of the lower support line of the rising final wave 5 channel on both indexes.
If the Dow closes below 28,700, it will increase the odds that the top I have been warning about for months is finally in and that we are now entering a new Bear Market.
Also, by breaking below 28,700, it would mean that the action for the past two weeks has been part of waves 1 down and 2 up of the new Bear Market and that impulsive wave 3 down is now underway. This wave has a potential target near the 200-day moving average near the 27,500 level. Because of this, The Model will be looking for an exit point to sell its ‘trial’ position in DDMs.
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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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Category: Professor's Comments