Euro$ Trade

It looks like the wavecounts are starting to make sense.

At least for the ES, YM, and Euro$, which are working off the 1-2-3-4-5 wavecount on the 24-hr 240min charts. NQ is a potential a-b-c X a-b-c pattern on intraday chart.

Euro$ Wavecount Structure

- Daily: img02.imagefra.me/img/img02/7/8/24/aarc/...

- Intraday: img02.imagefra.me/img/img02/7/8/24/aarc/...


For the bears: Euro$ is a simple Head and Shoulders:

- img37.imagefra.me/img/img37/7/8/24/aarc/...

Head and Shoulders are a common occurence after a i-ii-iii-iv-v rally has completed and the a-b-c starts to form. Thus, it is higher probability in this case that the HnS is going to fail. But that will still have to be seen. The proof of the pudding is in the eating.

ES, YM, and Euro$ have been been dancing the same tune on the Daily and Intraday Charts almost step by step for at least 11 days already. I do not expect the pattern to change in the immediate future.

9:20 Update:

Euro$ 15min chart:

- img38.imagefra.me/img/img38/7/8/24/aarc/...

So far so good for Euro$. I bought some Euro$, ES and YM when Euro$ reached the v-th wave TargetLine (using 1min volume spike divergence buy method). You could never know how strong the 1.2606 Major Support can kick in (a minor penetration is OK). Will just have to use trailing stops just in case this wavecount is wrong.

10:30 Update:

US stock markets got hit by bad news at 9:30. Euro$ tried to follow but suddenly de-coupled and finally was able to rally strongly on the 15min chart.

Next entry for the Euro$ will be a re-test of the ii-iv Testline and/or 2-4 Testline on the 24-hr 15min chart. Or an equal move for the supposedly 1? which is still indeterminate as of now. Or better still, let the 5min forms a 1-2-3-4-5 rally, then buy the A-B-C pullback for an entry. 5min is still a 1-2-3 up with 4th starting to form.

1046.77 is a major fibo extension support for the SnP500.

- img37.imagefra.me/img/img37/7/8/24/aarc/...

Next support (if the 1046.77 fails is the 1040 area price line supports. Also, a potential Inverted Head and Shoulders on the daily chart is still developing with a potential Right Shoulder support at the 1038 area.

My ES and YM trailing stops got hit. Will have to stalk the major indeces again for a possible buy within the 1055-1038 area for the Spx.

Good Luck.


EOD Update:

Euro$ more likely has already completed a 1-2-3-4-5 rally on 5min and is now trying to form an A-B-C down.

Euro$ is not yet out of the woods with the potential 4? and 5? on the 240-min chart waves still indeterminate despite the vertical run up on the 5 to 15min charts. Major resistance is at 1.273.

Higher probability this is an a-b-c down on the daily chart If and When Euro$ is able to break above 1.28.

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SnP500 still got a 5th nominal target of 1044.24 with minimum 1049.20 and maximum allowed 1036.20 targets on the 15min chart illustrated above. A hard break below 1036.20 can mean a spiral meltdown.

Therefore, Spx MUST start a reversal rally tomorrow and MUST retrace more than 62.8% of the 1-2-3-4-5 run down (once it has completed most probably during the morning session tomorrow) on 15min in a HURRY!.

Otherwise, IF spx keeps consolidating tomorrow or breaks below 1036.20; then higher probability the Bear Count of 1-2-i-ii-iii will start materializing with indeterminate target to the downside but with a Quick and Dirty 1-2-i-ii-iii-iv-v-3-4-5 run down target of 986 using the 120min chart for the Bears - from the last high of 1126.74.