Stock, Option and Futures Trading
August 4, 2011
To look back at the last pattern on the TF (the red lines) the last leg down did not have a wave within a wave. Also the true number is 1.870% and that puts the TF down to 688.70. Since the last pattern did not have a wave within a wave that means we do have high odds of NOT having a wave within a wave right now.
This means from where we are now we could have a panic sell down to 688.7 to then put in the short term low. This could happen today or tomorrow off bad news and then the low is in.
These levels are levels to look to cover short positions not a level to just buy. We would need what we call a “Turn Pattern” at the 688.7 level.
This is called corrective symmetry. If you go back and watch the AAPL video there was symmetry at the $405 top for resistance. The post is here : http://eminischool.blogspot.com/2011/07/aapl-timing-video.html
Just like AAPL is down 22 from that top the TF could bounce up 120 from the 688 low.
Lets see what happens,