Today's preferred count in SPX was a miss. COMPQ has, so far, held its key level and the standard ABC remains valid as long as it continues to hold. But more importantly, this may continue to be the most helpful market for sorting out the noise heading forward:
Trade safe!
I thought the TL's on a diagonal are drawn from the end points of waves i and iii (lower TL in this case) and from the end points of waves ii and iv.
ReplyDeleteYou have the TL drawn from wave A to wave i of C. It may turn out that way, but it doesn't have to because it's the wave i/wave iii line that will come into play. Because we don't know where wave iv will end, we can't make any assumptions yet about the slope of the ii/iv TL, so I don't see how you can limit wave iii at this point in time. What am I missing?
Thanks!
Since there is currently no iii, there is no way to draw a "correct" trend line except to hypothesize one, which I did. Wave iii of an ending diagonal must be shorter than wave i, hence the invalidation level. ;)
ReplyDeleteAlways appreciate your updates Pretzel. Keep up the good work.
ReplyDelete