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Friday, August 5, 2011

Refactoring

I was wrong. There, I said it. The levels we broke to the downside in the major indices have undoubtably invalidated any chance of new yearly highs. That triangle formation I was watching in prior posts is invalidated. In fact, I'm going as far as saying the May levels will remain unviolated likely for years.
I think we have just started a new primary degree wave down.
I need to post some charts which I will do later today. Part of the problem is making sense out of the intermediate term picture. I think it's likely we are in a diagonal first wave down of possibly minute degree. If there is any good news, it's that the fourth wave in a diagonal typically retraces a large portion of the third, often even overlapping the first wave. It would make sense to wait before attempting to play this downside move.

That's all for now.

Sent from my iPad

Posted by Waverunner (FractalTrader) at 7:37 AM

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Notation


Wave DegreeMotiveCorrective
Grand Supercycle((I)) ((II)) ((III)) ((IV)) ((V))((a)) ((b)) ((c))
Supercycle(I) (II) (III) (IV) (V)(a) (b) (c)
CycleI II III IV Va b c
Primary((1)) ((2)) ((3)) ((4)) ((5))((A)) ((B)) ((C))
Intermediate(1) (2) (3) (4) (5)(A) (B) (C)
Minor1 2 3 4 5A B C
Minute((i)) ((ii)) ((iii)) ((iv)) ((v))((a)) ((b)) ((c))
Minuette(i) (ii) (iii) (iv) (v)(a) (b) (c)
Subminuettei ii iii iv va b c
Micro((1)) ((2)) ((3)) ((4)) ((5))((A)) ((B)) ((C))