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Twists and Turns

SnP500 was able to reach the 5-th Wave Nominal Target Range as illustrated on 'Twist and Die' Instablog of Sept 22:


Today might prove to be the reversal day with the SnP500 temporarily breaking below the 1101 level and recovering above that level before the close:


It's not all cut and dried since the SnP500 seems to be still missing a potential v-th down on the 30min chart measured from the Sept 27 top.  Similarly XLF, $TRANS, and $SOX seem to be still missing the last v-th leg on their 30min charts.  But most of the time, when there is a false double bottom breakdown on the daily chart, the last v-th leg down on intraday charts will either truncate or not print at all due to the usual short squeezes that happen after the event.

Among the major indexes, NQ is the most bullish with a potential Leading Diagonal on the daily chart that had been retraced by 80% today:


*  NQ is the most bullish on the weekly and monthly charts since it was able to make a truncated 5-th down in March 2009 while ES and YM went lower lows.  NQ is expected to go way above the 2007 high with a 1-2-3-4-5 rally on the weekly chart (illustrated  since last year on previous Instablogs) before it will be expected to go into a multi-year A-B-C intermediate correction possibly starting next year.

For now, the SnP500 provided the earliest possible bullish run when it broke below the 1101 level early in the morning then recover above that level at the close.  For a little bit of safety, it is better to wait for a 1-2-3-4-5 rally to happen first on the intraday 15-min chart before buying a slow grinding A-B-C pullback.  For those not used to real time charting;  buying above today's high is the SOP method of entry then using today's LOD as the stop loss.

127.20% Fibo Extension Level (at 1066.40 for SnP500) is the usual reversal level but Spx made a sudden reversal rally before the close that broke above the 1101 level that practically made it unnecessary to keep waiting for a touchdown to 1066.40 level.

I bought NQ today at 2052 in expectation of a zigzag down reversal on the daily chart using the 79% fibo retrace level as a guide.  Also bought  YM at 10,423 when YM made a 1-2-3-4-5 rally then went into a slow grinding complex A-B-C run down on the 5min chart.  YM made a double bottom bounce on the daily chart early in the morning today that made it highly desirable to monitor the intraday 5min chart.