Immediate Decision On SPY
Putting on
the horns as I look at the daily charts of SPY and DIA, this corrective move
we have experienced since December has been extremely healthy. As I glance over
the major index ETFs, I see the potential for a two-step corrective pattern to
unfold, or in Elliott Wave terms, an A-B-C corrective move down. We have already
completed A and B. Right now these indices are hanging by a thread of immediate
Fibonacci price support.
For example, in SPY if we trade below today’s
low of 88.45 (as of this writing), we could see a quick drop down to the 84 –
85 range. Dropping down to this level would complete leg C of the corrective
phase. In the Dow Diamonds (DIA), if we can not hold the low put in so far today,
there is a good chance we will fall to around 80 – 81 to the next Fibonacci
price support zone. In immediate terms, that would be an ugly selloff. However,
if that does happen and we trade below the Dec. 31 swing low points, I would
begin to get excited about long trades on the indices and that would translate
to many nice long setups in individual equities. Also, as I continue to run
time cycles on these ETFs and individual stocks, I am getting a focus of time
cycles coming in between January 23 – 27 (+/- 1 day) for a potential reversal
to the upside.
So, for now,
based on the indices, I’m sitting tight and seeing what develops around this
immediate decision. If we drop quickly down to the next support zones, I’ll be
pouncing on long opportunities.
Have a great
evening!
Â
PS Last week
to save 15% on my
module!