In the following chart you can see the S&P june future. The move from the 1340 lows has moved outside the rising channel ans is now at 23% retracement. Typical correction would reach 50-61,8% retracement. Pre market the futures are declinging having made 3 waves down. European indices have moved also outside of the rising trend channel. As I said yesterday stops should be raised and longs should not get greedy as the market is near or at the top of the latest move.
The greek market continues to move sideways with low volume. I 'm not very optimistic since I still don't see 5 waves up. An expanding triangle could be forming the last few days as a B wave and a new low wave C could be expected to end the correction. 
European indices and Dow have made deeper corrections than S&P....Could this be a shallow wave 2?
ReplyDeleteYou are totally correct....I was looking all day at the retracement levels of several indices and it looks like they are correcting much deeper than S&P. At todays open near 1390-95 I believe strongly that a C wave is completed. Lets wait and see...time will tell.
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