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Correction Scenario

Posted on the 11 November 2014 by Souljester @souljester618
I worked this up today, which is a summary of what I have been thinking and talking about in my most recent equity post. 1986 Support. The short term fib confluence/resistance is in the SPY 204.5-6 area, which we came very close to hitting today. I was just looking at the Bradley Dates, which as everybody knows have a +/- component and do not have polarity. If I have the Bradely dates written down right (lazy and did not double check my notes online), the obvious scenario is: (1) Low around Bradley 11/20 (my cycle says 25-27) (2) High around Bradley 12/10 (3) Low around Bradley12/26 (my cycle says 25-27). This first low into 11/20 is a tricky one on the analogs (have been talking about this). For that move, it could be a rolling correction that finally tags the rising daily 21 EMA at the end of the correction; if it does not do that, then we may be into deeper correction scenarios.   So, strategy wise is to watch how we go into the 21 EMA. The bearish analog I mentioned in the 1986 Support post (which I am not following because I would need tons of confirmation to make it viable..I just have two indicators that happen to right now be in the location they would need to be for that scenario, which is why I would like RUT to negate something on a price perspective) would be a July 2011 scenario. Under most the bullish scenarios you would trade sideways into the Nov. 20 21 EMA low, hit a new high on December 10, and then tag 1986 support around Xmass. This is of course ALL IMHO....This scenario and the bradley dates are analytically unrelated completely to my two cycle low dates. It happens to mesh up with them, which is nice.  I am not a big fan of trying to guess corrective structure. I prefer to trade moves like the July and September waves down and the August and October waves up when I can identify them. But, this one gives 3 time points (2 lows and 1 high) to watch for ST trade entries. There is always a bear path and a bull path. We cannot know which path the future will choose. As always, do your own due diligence, read the disclaimer, and make your own investment decisions. Peace, Om, SoulJester

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