Elliott Wave: Week of 10/8/18 - Why current decline helps bulls
Publishing early this week as I expect to be completely out of pocket for a few days, maybe the whole week. Is October scary, as I asked last week? Not much so far (but is just a little).
A pullback was expected, though it surpassed what I thought would be support in the 2880-2890 area. Respecting the potential for a drop to 50d sma (or in my case 55d ema) is always prudent, which is where the bounce occurred at the week's depth on Friday. So what next?
The speed of the decline suggests sideways movement ahead. Other technical indicators (fractal, lower degree EW waves, comparison to Small Caps and Tech indices, A/D data, etc.) are consistent with expectations for an upward technical bounce, suggesting caution before heading higher.
As anticipated last week, I layered in positions starting with Thursday's drop, and added more on Friday. They're primarily short term based on the above expectations. Comfort zone is still with primary trend being up.
A pullback was expected, though it surpassed what I thought would be support in the 2880-2890 area. Respecting the potential for a drop to 50d sma (or in my case 55d ema) is always prudent, which is where the bounce occurred at the week's depth on Friday. So what next?
The speed of the decline suggests sideways movement ahead. Other technical indicators (fractal, lower degree EW waves, comparison to Small Caps and Tech indices, A/D data, etc.) are consistent with expectations for an upward technical bounce, suggesting caution before heading higher.
As anticipated last week, I layered in positions starting with Thursday's drop, and added more on Friday. They're primarily short term based on the above expectations. Comfort zone is still with primary trend being up.