A Wave Two to the Seventh Degree

Wave Two to the Seventh Degree

Today’s  market action didn’t leave us too surprised.  My post this morning said that we were looking to end a subminuette wave ii perhaps in the 50% retracement area.  We didn’t quite hit that level but we came close, then the YM’s sold off quickly to the fire line.  For most of the rest of the afternoon it chopped sideways and then popped quickly to the upside, where it found resistance again near a 50% retracement level.

If my chart above is correct, the overnite market could produce a seventh degree wave two of the miniscule degree and then sell off fast. The ensuing wave 3’s could be something to behold. So get on your tin hats and hang on tight. If my count is right, to quote David Starr, ” we will see new lows for the year before we see this high again”

My alternate count that is in red offers the chance that todays action did not finish wave ii and instead the YM is tracing out a larger [a]-[b]-[c] flat correction and we could see another high near the highs or above where I have labled wave ii.

Good Luck and Good Trading