Wolfe

[waveslider]

The stop would be below point 5 yes. Your chart is good, but I placed my point #1 at the low on the 25th.
The reason why is that this is where the move higher began after breaking out of a range. Also it is at 50% of the entire move higher.
The pattern seems to be activating nicely. Since the target is so much higher, a conservative approach would be to put on 1/2 here and another half on a trendline break higher.
I would say the actual target will be more like 845-850 or more as time passes. That's about 60 points, or $6000 per contract. Wow.
You know, we're not the only ones watching this, I guarantee. It could be a rough ride higher.

[waveslider]

Here's one intraday, this low should hold if the pattern is true - --

[waveslider]

I took this one short and exited at the andrew's line. That was fine for me, we'll see if it hits the WW target...

[waveslider]

whoa... precision of market geometry

[bh_trade]

	Quote:	waveslider
	whoa... precision of market geometry

That was indeed a beautiful, almost textbook Wolfewave. What charting package? TS by chance?

I typically use 1500 share for ER2 but tried to replicate using 466tick chart and Clyde Lee's Wolfewave indicator but it did not pick up that pattern this afternoon on either the 1500 share or 466 tick. Not only would you have had a nice, low risk entry point against that upper wedge, you would have had negative advance decline and pathetically negative up/dn volume supporting the trade, it was almost bulletproof. Man, I wish my indicator would have picked up that pattern today as I surely would have taken the trade.

[waveslider]

Tradestation, yes 466 tick is nice for ER2. It was perfect, one of those ones you want to 2nd mortgage the house for...

Is this WW on the 60 minute chart a perfect storm?

Key level will be 782 tomorrow.

[Tasuki]

See attached. Is this a valid Wolfe Wave?

[bh_trade]

	Quote:	waveslider
	Tradestation, yes 466 tick is nice for ER2. It was perfect, one of those ones you want to 2nd mortgage the house for... Is this WW on the 60 minute chart a perfect storm? Key level will be 782 tomorrow.

My indicator may have missed the bearish setup earlier, but it is flagging the potentially bullish one you identified. After hours had pretty hefty downside penetration of the support line, but I noticed your data is day session. Perhaps if the market stabilizes some overnight and opens near today's closing price I would feel better about taking the trade, but right now I would not be inclined due to after hours weakness taking price below support.

[waveslider]

Tasuki, I would say yes on your chart, it's a good one. But I would have taken the #1 point as that little pivot low b/w your point one and two.

The gap down tomorrow will either be a pretty evil continuation gap, and likely the 50% pt. of a whole new leg lower testing august lows, or it will gap down and be bought, forming an engulfing pattern on the day. Either way it is an inflection pt.

There is some evidence supporting a range and a move higher.

1. There are 2 unfilled gaps above.
2. ER2 began to outperform ES for the first time in quite some time. This is not typical of a declining market. ER2 also began to outperform NQ, which has been extremely strong on a relative basis.
In the attached 30 min. period chart, orange line is ES, blue line is ER2 the lines below are a MACD of their relative strength (ER2 vs ES) and the moving average of the RS line. This is an important chart to watch during the day.
3. This area has acted as support in the past.

4. Just looking at the chart - this market has done nothing but go sideways for a whole year. As far as I'm concerned, it's in a range until it's not. In a range you buy spikes into support and sell spikes into resistance.

There is some weird inter-market stuff going on - true. That dollar chart just scares the (#$# out of me for some reason. Crude oil getting volatile and toppy looking - or ready to blast parabolic.

Interesting markets!

[waveslider]

"Key level will be 782 tomorrow." I wrote yesterday. It closed on it today exactly. This could be a major turning pt. in the market since ER2 has been lagging for quite some time. The Russell index of smaller cap stocks usually leads the market into a new move.

We want to see some major strength quickly tomorrow, buyers with conviction, to validate this pattern.

A cross of the light green line would be a good conservative entry. The first target would be the andrew's line (dark cyan). The WW target is the 1-4 line, which would basically be the top of the range.