At Critical FibGrid Levels Now – What Traders Need to Know

Many markets are at critical levels right now with turns possible either at current levels or slightly higher.  While we’re near these levels we wanted to send out an email to do a few things:

1. Let all our memebers know about the importance of nearby levels, whether or not you are actually using FibGrid;
2. Make sure that everyone knows about the resources to get the most up-to-date information about FibGrid settings in case we take out key levels;
3. Let you know about the other resources that we available to help assess direction near critical levels

DJIA at Significant Resistance Level

The DJIA is finding resistance at one of the most important FibGrid lines there is, the uppermost fire line from the 1932 projection.  Our Elliott Wave counts support the possibility of a long-term top here.  If prices do reverse from this level then it will be just more instance where turns happened at levels anticipated by FibGrid.  It certainly would be fitting to turn here, at a level that is in exact Fibonacci proportions to an Elliott Wave that began in 1932.

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Gold at Major Resistance and All-Time High

And the DJIA is not the only chart finding FibGrid resistance.  For example, gold is putting in all-time highs based on a projection upward from when the price of the metal was in double digits.  Gold did briefly spike above the level, but hopefully we can cut it some slack for spending a couple of days just beyond resistance as it is potentially ending a move that has lasted for many decades.  However, in case it does extend beyond that level again, those of you who track FibGrid on gold will want to check our forum topic on FibGrid settings for silver and gold.  As long gold values stay below the fire line the current settings are good, but we will use the forums as a way to communicate and discuss new settings that we’re working with when price breaks beyond key levels.

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Make Sure You Have Latest FibGrid Settings (and FibGrid)

I know that many members use FibGrid for intraday levels for futures trades to excellent results.  I just want to make sure that everyone is also aware of the importance of FibGrid levels when looking for long-term turning points in markets.  If you’re not already using it, I really do urge you to take a look at the one indicator I simply won’t trade without.

For everyone who is using the grid, I want to make sure you also know about the forum post on the Russell 2000 and related issues (IWM and TF) since those are currently trading above current grid values.  Since we may be at a major turning point, the Russell may fall back below into the range covered by prior grid settings in which case we will revert to using those.

Once it seems that new settings will stay for a while we’ll release a new version of software and also update our published list of recommended settings.  Until settings are ready to be made somewhat permanent, the forums will have the up-to-the-moment values.

Factoring in Wave Counts

Kevin and I are telling subscribers to our Elliott Squawk newsletter to watch 10,929.28 for a good indication that a long-term top in the DJIA was likely struck at the FibGrid 1932 fire line and that a break below 10,719.94 would make that outcome significantly more likely.  Every day, we update our forecasts on the DJIA, the YM futures, the Euro, and 10-year treasury futures giving updated Elliott Wave counts and trying to add in some instructional content on how we count waves and use technical indicators to help.  It’s a great way to figure out which side of a grid line we might move toward.  If you’re interested in learning more, we offer a 7-day trial that includes access to all our past updates.

Kevin and I have both found that knowing Elliott Wave theory and tracking wave counts has dramatically improved our trading over the years.  Recently, we’ve had many inquiries about learning resources for Elliott Wave theory so we are putting the finishing touches on an Elliott Wave Bootcamp seminar that we will launch early next year.  The format will be 8-10 weekly sessions aimed at getting folks both theory and experience to use waves in their daily trading.  If you are interested, feel free to contact us or look for an upcoming announcement.

Using the Forums

Our forums are another great way to talk about what’s happening at critical market junctures.  Many of you are visiting them.  Go ahead and post a question or comment and get a discussion started — it’s a great way to make FWTrader your own keep us talking about trading topics that matter to you.