Triangle Still In Progress

There's not much to add today. The triangle pattern continues to work its way toward wave e, which may come as early as Wednesday or as late as the first of next week. In Elliott Wave International's Short Term Update today Steve Hochberg reminded readers that wave e is often accompanied by some contrary news, in this case bullish, that would seem to indicate the end of the downtrend, when in fact the opposite would be true since wave 5 would be imminent at that point. So, don't get faked out if we get a sharp rally on some unexpected positive news in the next few days.

I must say that this triangle is doing its job by wearing people down. I have even got bored the last few days with the lackluster action. I have only added one new position in the last week and have one open order for another that I am not sure will get filled.

This morning's post on Terry Laundry's T Theory Observations was one of the best I've read in a while. As far as I can tell Mr. Laundry has come up with a unique market analysis methodology that is quite reliable. He uses a volume oscillator to measure accumulation and distribution and has observed that when measured correctly the time of accumulation tends to match the time of distribution thereby creating a T that can project market turns. His current analysis fits perfectly with my recent observations that the triangle period may last until the end of this week or early next week before the downtrend resumes into a late November early December low.

The current wave projects to 29.03 to 28.36 in the Qs and 8633.77 to 8142.80 for the Dow.

Unless something unusual happens I will probably not post again until we approach the end of wave e. Be patient.