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On Fri, 19 Dec 1997 13:00:10 -0500, you wrote:
>Realtraders,
>
> Currently it is 10:25am est on 12/19/97 and the S&P 500 is down 18.74 to
>936.56. I just thought I would show you a potential symmetrical wave setup
>that is currently taking place. Please take a look at the attached 60
>minute chart of the S&P Cash market which dates back to the October high.
>
> You will notice that once we made our October LOW on 10/28/97, the market
>rallied to 949.62 on 11/5/97. This will be the Wave 1 high. Subsequently,
>the market pulled back to 900.76 on 11/13/97, and is called the Wave 2
>bottom. This decline measures 48.86 points. If we calculate the 20%
>leeway, we get a +/- range of 9.77 points or a zone of 39.09 to 58.63.
>
> From the Wave 2 bottom, the market again rallied to 986.14 on 12/5/97
>this is our Wave 3 high. Since that high, the market has pulled back to
>our current level, which (as I write this) is now 931.58 (down 24.00 pts.)
>and is POSSIBLY forming our Wave 4 bottom. If we measure this Wave 3 - 4
>decline, we get a magnitude of 54.56 AND WE HAVE SYMMETRICALLY MATCHED WAVE
>1 - 2. Therefore, believe it or not, I am looking for some sort of support
>RIGHT NOW!!! Further, several of our 60 minute oscillators and indicators
>of very oversold and are looking to turn up.
>
> Finally, this wave structure is considered intermediate term in nature
>and could provide support which could last for several days to several
>weeks. Note, based on the above structure, you should place your stop loss
>just below the MAXIMUM leeway value of 58.63 points from the Wave 3 high or
>in the area of 927. Also, I would just like to say, that I would not enter
>a new long position at this exact moment. It would be like trying to catch
>a falling knife. Personally, I would wait a little longer to see if we can
>reverse this downtrend later today and also hold above our maximum leeway
>level and if we do, I would be looking to go long at that time. Obviously
>keeping a tight stop close at hand.
>
>Hope this helps,
>John Boggio
John,
Now that the markets have closed, what do you think. If this is a
'symmetrical bottom', where would you measure up Rom to calculate the
next top. I.E., would you start the next up leg from today's low or
the close. Either one would take us to a new high on the SPX,
although not by a lot.
jar@xxxxxxxx
James A Roush
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