We received our adjusted count today in the S&P and Dow markets. All is well so far. Our PTI in both markets is still good, as are the Wave 4 Channels. However, the Dow is getting very close to violating the Red channel. If we move much lower than yesterday's low, we will wind up violating this level.
In the S&P, we still have some wiggle room for the W4C.
In either case, each time we make a lower low during Wave 4, we will get updated numbers for the PTI and adjusted levels for the W4C. We need to keep a close eye on these values, as well as the Oscillator, to make sure the rules for the Type One setup remain intact. Any violation of these rules would indicate that the Weekly time frame is ready to take over.
Be Prepared!
nate mccartney
That looks like an intraday chart as mine has a lower low on the EOD. It still loolks like the DOW may fall another +/-120 and still be within the red wave 4 channel. The PTI is/was on 61 today. Looks like the bulls have another day or so.
Posted by: Terry Felter | July 07, 2009 at 04:01 PM
Do we need to redraw the RTC now that we have a new low?
Posted by: MikeJ | July 08, 2009 at 03:16 AM
You do need to redraw Mike.
Craig
Posted by: Craig | July 08, 2009 at 09:05 AM
Looks like in ESU9 daily chart, oscillator has retraced more than 140% today and in spx it just touched the 140% retracement. Nate and Craig, comment please. Thanks.
Posted by: David | July 08, 2009 at 05:58 PM
David,, I just measured it and it is just about to violate. Would not take much of a push to get it there. We will have to see.
Craig
Posted by: Craig | July 09, 2009 at 02:50 PM
Hi Craig,
We have broken the 1.4 rule in the Osc on the $SPX & S&P Futures. Is it time to follow the weekly type 1 sell ?
Cheers
Posted by: anthony | July 10, 2009 at 06:46 AM
Anthony, if you can deal with the size of that stop on the weekly chart nothing wrong with following the sell there. In the Member event I recorded 7/6/09 I laid out my thoughts on the S&P. They allow for a retest of the high before failing. That would still keep the weekly sell intact. In murky markets like we have here with a complex wave 4 on the daily doing a little less and be defensive is a what I like to do.
Good Trading
Craig
Posted by: Craig | July 10, 2009 at 07:39 AM