Sunday, September 8, 2013

09/08/13: Looking ahead to this week

To me, SPX is nearing completion of this rising bearish wedge which, after completion, targets the origin of the bearish rising this case 1620s.

My belief is that we are still in Wave B of intermediate wave iv.  This means a devastating C wave is yet to start.  The preliminary target is around 1580.  I believe this will generate enough bearish sentiment to give the markets one large wave up.

Looking towards Monday, there is the potential for the markets to test 1661 and maybe move up to 1666 again.  This would not violate the rules of the bearish wedge.  If there is enough euphoria build up, then it's possible to see 1670s.  I am keeping this in mind since I am always thinking about risk management.

Currently holding 2.5 lots of short SPX (via SPXU).  The entries are marked with the red arrows.  The next timing window is the 11th.

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