Stock-Market-Observations

MY CHARTS

WHAT’S HAPPENING?

On Friday the ADX warned of an impending correction.  That correction began Sunday night in the SP futures.

On Saturday I said, “We’ll see how next week goes, but a 1-3 day breather wouldn’t be out of the question.”.  We completed a step down on Monday and the question is whether that was all of the correction, or was it step 1 of a 3 step?

In the first chart, the uptrend since April 23rd broke a narrow uptrend channel.  This confirmed the suspicion that a correction was taking place.

04-30-12 SP FUTURES 15 MINUTE BARS

In the next chart, the rally late today stopped after 3 tiny steps up.  It also stopped on one of the declining Fibonacci lines.  If this line holds, it would look like we have only completed step 1 down of 3.  Lower lows would be the confirming factor for more steps.  But since the correction has little momentum, it’s appears likely that this decline could be muted.

04-3-12 SP FUTURES 3 MINUTE BARS

I would be a buyer after a completed 3 step down.  More about that later.

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This entry was posted on April 30, 2012 at 3:12 PM and is filed under UPDATE. You can subscribe via RSS 2.0 feed to this post's comments. You can comment below, or link to this permanent URL from your own site.