Sorry to everyone following my charts. I think I have made a grave error in my wave analysis. I did not align the wave back in wave 1,2,3 correctly. The data was very noisy with several overshoots and hard corrections. It has been nagging at me for weeks that something was wrong with my counts and fib ret levels. I think that I may have it right now. If I do, then we are at the end of Wave 5 and looking for a more serious corrective wave. We may have only made it half way through. Several of the stocks I trade broke their trend lines today but pulled back up. That is not a good sign.
If this does break to the down side, then I am not sure where it will stop. I hope that it will stop at the 0.618 fib line. The Fed is pumping like crazy so I don't see how it could fall too far, but the stock market is tricky like that. Markets that have this much liquidity are hard to kill. I would worry about a bigger drop if we where into 2Q earnings in July. There has not been any really bad news to warrant a large drop.
Hope this helps and good luck.
If this does break to the down side, then I am not sure where it will stop. I hope that it will stop at the 0.618 fib line. The Fed is pumping like crazy so I don't see how it could fall too far, but the stock market is tricky like that. Markets that have this much liquidity are hard to kill. I would worry about a bigger drop if we where into 2Q earnings in July. There has not been any really bad news to warrant a large drop.
Hope this helps and good luck.
