sp'weekly8
Dow'monthly'2, rainbow
Summary
So...the main indexes actually managed a daily decline of more than 1% ! Even yours truly had given up on a C- wave yesterday.
Yet..it does look like we have a sub'4 ..ABC wave. - much like late Oct/early November....
sp'60min'5 - broader overview
In the previous ABC wave, the C wave was 6pts lower than the A wave floor. It is arguably fair to just take off 6pts from the recent 1779 low..and that gives a target zone of 1774/72 for Thursday morning. As ever...we shall see!
Looking ahead
There is the usual weekly jobs data, along with retail sales.
*There is sig' QE-pomo of $3-4bn.
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Perspective is everything
For much of this year, one of the bigger issues that I've come to truly appreciate is not to get lost in the smaller waves. Today was itself a good example. Once the bull flag - along with support, had clearly failed <1800, the bulls were done for. There were a few hours of chop in the early afternoon, but the closing hour indeed turned out to be especially weak.
Despite today's rather interesting action, the bigger trends remain strongly bullish. I realise many are now looking for the FOMC to cut QE next week, but even regardless of that, the hugely important monthly trends are strongly bullish.
Just look at the Dow monthly. Bulls could sustain downside to the 10MA - 15200s, 600pts lower, and that would do absolutely nothing to damage the primary up trend.
For those holding short overnight...dwell on that Dow chart, and consider an exit on any opening Thursday gap lower into the low sp'1770s.
Goodnight from London