Stock Market Highlight #18
Sharp up move anticipated.
(COMMENT # 660)
UPDATED 19980907
COMMENT 1998-660
1. The chart at the end of this COMMENT shows 16 minute bars for the September S&P 500
futures contract.
2. This is a continuation of the discussion presented 980901 in COMMENT # 633 and 980903
in COMMENT # 649.
3. Prices are up sharply in the overseas market.
4. The large move up from the 980901 low required 35 16 minute periods (FIBONACCI # = 34).
5. The decline to Friday's low required 62 periods (3 X FIBONACCI # 21 = 63).
6. The "cross" in the chart shows the target discussed in COMMENT # 649.
7. As you can see, price didn't quite decline as much as anticipated and ate up a little
more time than the ideal scenario, but was basically in line with the downward CORRECTIVE
expectation.
8. We're now expecting the "C" wave up.
9. This movement would normally be expected to carry to the upper up trendline shown in
the chart.
10. A key resistance area, however, will be at the "A Wave" peak.
11. If the "A Wave" peak is not exceeded, expect a "D" down and an
"E" up completing the sideways move.
12. If this is the case, neither the "A Wave" high nor the 980901 low should be
exceeded prior to the "4th Wave" being complete.
13. An outside possibility is that the movement up shown in the chart is the first of much
more to come on the upside.
14. Low probability of this occurring as this is written, but, as always, the market will
let us know what is occurring.
15. The targets reviewed in COMMENT # 633 of 980901 are still the favored scenario.
16. All price action of the last few days is in accordance with the expectation as
originally presented in COMMENT # 633 of 980901 and COMMENT # 649 of 980903.
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