Well, if you know what levels are, you know that this will be about S/R. The misinformed have been calling moonshots all last week. What is so sad, is that whenever they call for the moon, the market pulls back. Clearly displaying lack of knowledge of S/R’s and momentum. These poor blokes, I hope they are still taking gains. If they actually knew what they were talking about, they wouldn’t have been making calls for 1320/30 back Monday and Tuesday and then again Thursday, Friday. If they understood what we discussed last week, that there will be some strong resistance in this area, then they would be more credible. Another important component that they forget is momentum. Momentum has been waning since 12/13 and before that with strength back in 11/18. These outrageous projections came from the same people projecting 1130 pull back 4 weeks ago. On Friday, they projected 1400 for the top of their trend line. As FMM would say, “O my lord!!”
As discussed in previous issue, we are still working on the weekly retrace back to Sept/08 levels. We are still on par for that target but there are more signs of weakness building up.
Hang out with reputable Elliot Wavers. Here is another no nonsense EW person with real projections. One Elliott Waver or DanEric’s Elliott Waves.
Momentum and Levels work hand in hand. Momentum will change long before it reaches the level of significance in order to support the reaction that will occur prior to reaching that level. Meaning, if you are approaching significant resistance, you will know what will happen because of the weakening of momentum. If you are approaching an area of significant support, you will see momentum building.