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Realtraders,
Earlier today I posted a short-term analysis on the S&P 500 in which I
stated that current indications suggested that a short-term bottom formed
and said that I was going long at that time. Further, I indicated a
possible rally projection to the 95500-96500 level with our protective
stops set at the 90760 level.
Well, we DID NOT get the rally as expected and actually closed just above
our protective stop level. As a matter of fact, right before the close, we
set a new low for the day at 90530 and in the process broke below our stop.
Thus this would suggest that we now have a failure of this relatively
small internal wave structure.
I apologize that my earlier analysis did not come to fruition as
explained in that commentary but we felt our analysis, at that time, was
indicating that a rally should ensue. Hence, we hope your losses were
limited due to our relatively close protective stop level. Which is
precisely the reason why we use those stops.
If you were still long going into the close, consider selling tomorrow
especially if the market opens lower (below the 90760 and/or the 90200
level where I indicated that there was additional support). However, as I
write this post (8:10pm est 11/12/97), unbelievable the globex futures are
trading up 300 bpts, which is rather surprising based on the negative
sentiment at the New York close and the fact that the Nikkie futures were
trading down 800 points. Anyhow, if we are able to open HIGHER tomorrow
you may want to wait until the short-term charts are again overbought
before you sell but I don't know if that is going to happen....This market
is just not behaving well and it is very tough to analyses and forecast
some of these short-term moves without getting emotionally attached to any
one direction. Personally, I am remaining flexible to either direction
(but have a downward bias), in order to realize any potential gains that I
may be able to achieve in the near-term.
Finally, as I already mentioned in my past posts, any breaks below the
90200 level in the SP Z7 would indicate a possible retest of the October
28th low and possibly lower because there are no meaningful classical or
symmetrical support zones other than good old Fibonacci 50 and 62%
retracement zones....Tomorrow could be a very important day!
Hope this follow-up helps and again I apologize for the previous analysis
which did not unfold as expected.
John Boggio
For recent commentary and more informations regarding SymWave, please go to:
Commentary: http://www.realtraders.com/boggio/disc7_toc.htm
Info regarding SymWave: http://www.realtraders.com/boggio/boggiobio.htm
Thank you.
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