Wavespeak Update

ewwisdom

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It’s been a long time since the indices gave us anything other than a straightforward price pattern, but
we’re getting one now and it would be a mistake to not pay attention. We’ve seen two full weeks of
market action in April. In the first week, the indices moved dead sideways in a corrective, bull-flag
type pattern right at multi-year highs. In the second week, greater weakness emerged in what I
immediately considered an ending pattern to the correction that started at the beginning of the month.
When the indices advanced in what appeared to be impulsive fashion late last week, the sensible
conclusion was that the correction completed and the trend was turning back up. All of that was
chucked out the window today when the indices gapped all the way down to last week’s lows at the
open. I have a lot of reasons to give you why we shouldn’t have seen this notable weakness, but we
did, and we have to figure out why. As we like to say, the goal is to follow the impulses on whatever
time frame you’re trading. We’ve spent a ton of time showing you how the impulses have been
occurring to the upside on every last time frame. Well, for the moment, we’re getting near-term
impulses to the downside, courtesy of today’s action. And if price is unable to turn back up relatively
quickly, we’d have to think that, despite previous indications otherwise, price is heading back to
March’s lows before the uptrend resumes in earnest.
 
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