Inverse News

Early Morning Update to YM

The market reversed it pattern this morning on the news. This mornings interpretation of new jobless claims reveresed the pattern of the pre-market news releases this morning.  New claims were less than expected. Hurrahhh. Only 473,000 approximately 25,000 less than expected. They call this good news?

The Market popped to a new overnite high on the release. In view of the overnite wave structure, we have adjusted our wave count. It appears that we have either completed or we are close to finishing the a wave of a larger degree a-b-c wave (ii). We have adjusted our count to reflect what appears that yesterdays early morning lows was the completion of an extended wave v to complete a minuette (i) of  minute wave [ iii]. The a wave counts out into 5 waves, so we would expect that this is forming a zig-zag structure.

In view of this structure we now expect to form the b wave which should be a 3 wave correction a. The EWP guidlines state that  “Wave B typically retraces 38 to 79 percent of wave A.”   Pg 89.   So for the present that is where we have placed our target range. We will monitor this   retracement as the structure unfolds to project a closer target for b. When it appears that it is complete this will give us the opportunity to target the end of c and wave (ii).

If our interpretaion of this wave structure is correct, we would expect another day or two for wave (ii) to complete.  We have placed a fibonacci time ratio measurement from the wave [ii] to the low of wave (i). We have observed that we might expect (ii) to end at or near a fib ratio of 138% of (i). This measurement can take us into late tommorrow or Monday.

Good luck and Good Trading.