03/17/13 – Changing To A 3 Step Correction

MARKET MESSAGES 

3/17/13 . . . 

This is the first correction since late February that is going to have 3 steps down.  All the other corrections recently have only had 2 steps down.

When we only see 2 step corrections, that means a buying stampede is in force.  The 2 step corrections are called by me a “can’t wait correction”, meaning it can’t wait to get going on the upside again.  Those are obviously great periods to hold stocks, but presently we have changed from a 2 step to a 3 step correction.

SP FUTURES 3 MIN BARS 03-17-13

SP FUTURES 3 MIN BARS 03-17-13

NASDAQ 3 MINUTE BARS 03-17-13

NASDAQ 3 MINUTE BARS 03-17-13

It appears to be only 2 steps up since February 25th.  That should mean we are going to have a correction and then a 3rd step up.  Hopefully I haven’t miscounted the steps since late February.

SP FUTURES 30 MINUTE BARS 03-1-13

SP FUTURES 30 MINUTE BARS 03-1-13

Looking at the SPX chart below, it appears that we are probably finishing 2rd step of the 3rd step since November 2012.  Some of the other indexes are further along and indicate that we could be finishing 3rd step up since late February.  See chart below.  Be sure and view the next chart “actual size” in your viewer.  This chart came from “My Charts”.

The chart for MXY (Mexico) indicates that we have probably started 2nd step down.  This should eventually line up perfectly with the SPX chart.  The present correction, another advance and then the 3rd step down in MXY would correspond to the end of step 3 up followed by a larger correction in SPX.

03-17-13 Chart #10.6

03-17-13 Chart #10.6

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  • Click on any picture or chart to enlarge it

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5 Comments on “03/17/13 – Changing To A 3 Step Correction”

  1. Bob Says:

    I have a blog update coming out (Today???) that shows the long term wave count AND an alternate count. Which one is true??? Take your pick.

    Bob
    https://stockmarketobservations.wordpress.com/wp-admin/edit-comments.php#comments-form

    Like

  2. Arthur Langston Says:

    I get confused looking at yr charts….. Reading Blog about starting 3rd step down but chart seems to plot that it is ending 3rd step up when looking longer term back.

    Sent from my iPad

    Like

  3. Bob Says:

    In the stock market, that quote has often dictated my thoughts or direction.

    Bob

    Like

  4. Valtinho Says:

    Here is an interesting quote which may apply to our current stock market situation:

    “When it is obvious, it is obviously wrong” ~ Joe Granville.

    The market will always do what is necessary to cause the majority of the participants to lose the most money. So far everybody seems to be predicting a correction, so a continuation of the rally is a real possibility also. As Jessee Livermore would say, “it is well not to begin selling in bulk until there is no danger of the engine back-firing”

    Like

  5. Hayes Noel Says:

    The SPX daily wave count from the Nov low is so obvious it’s scary. We are in leg 5 which, if it matches leg 1, measures to 1590. If today’s (3/18) selloff holds and starts back up, we will be in 5 of 5. Short term sentiment getting frothy.Two or three more weeks up to 1590 would take us to seasonally weak period where a more serious 5-7% decline could occur

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