Update 2: Stock Market Relief Rally Completing
Wednesday's rally did indeed hit resistance at the 2732 level and then pulled back some (green arrow). Enough for partial profits but nothing to write home about. The pullback was short-lived and continued strength on Thursday gave way to a significant breach of the 2732 level on Friday (red arrow). To me this means one of two things:
1) I have the wrong midpoint and the 2732 zone was not the right level to focus on for shorts
2) The midpoint was correct, the green arrow was all the correction we'll see, and the market will now continue pushing higher next week, possibly setting up a wave inversion where the upward wave will actually be about twice as big as the one I've been presenting.
At this point scenario 2 is favored. This could imply that the market sell-off of October is over and we will slowly resume the overall bull. I will remain flat until I see signs confirming either scenario and then reposition accordingly.
1) I have the wrong midpoint and the 2732 zone was not the right level to focus on for shorts
2) The midpoint was correct, the green arrow was all the correction we'll see, and the market will now continue pushing higher next week, possibly setting up a wave inversion where the upward wave will actually be about twice as big as the one I've been presenting.
At this point scenario 2 is favored. This could imply that the market sell-off of October is over and we will slowly resume the overall bull. I will remain flat until I see signs confirming either scenario and then reposition accordingly.
