The recent targets mentioned were for wave d, not wave 5. The wave 5 targets will be reassessed when we get to the end of the triangle, if that is what we are dealing with. Wave d may be ending as of Wednesday afternoon, if so then wave e could finish anytime between Thursday and Monday. As I said before, look for some positive news announcement that is concurrent with a market rally to signal wave e. We can enter or add to short index short positions near the end of wave e with the wave c high of 11/4 as a stop-loss. To be valid, wave d must not come under the 10/24 lows. If it does then either we are in wave b of the triangle or a flat, or wave iii of wave 5. Today's light volume is not congruent with wave iii of 5, however.
I took partial profits on index shorts this afternoon, and will look to add back on the wave e rally. I am maintaining partial short positions in case I am wrong and we are already in wave 5.
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Mkt action is evolving much more along the lines of the Descending Triangle of the SPX than the Symmetrical Triangle of the DJIA and thus the wave e rally will be a lot less impressive.
I, too, admire Laundry's work but he has been totally wrong about this week: "The second T is a classic double bottom T and is nearly always reliable. It acts to extend the recovery into Nov 17, or maybe just Friday the 14th."
The action this week can hardly be characterized as "the recovery". I believe the reason is selling begets more hedgie redemptions which begets more selling even by the hedgie's with good performance. And they weren't planning on needing as much cash for redemptions.
And thus wave e probably won't be anywhere close to Monday the 10th's highs.
Regards,
dave
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