This is the article and chart my premium subscribers received this weekend:
The market appears to be in a period of consolidation. I called it a triangle and a Wave 4 in my last posts. The only difference in my call for this weekend is that I am calling it a "running" triangle" and W4. You can see an illustration of the running triangle on p. 50 of EWP. This is just one of several possibilities for future action. Yury has a good count also. Bottom line for all those possible patterns is that it is going to be choppy, and you will have to be on your "trading toes".
Here is Yury's post and count:
Well well well, based on the count the b" is in its last stage or already topped!!
I have prepared /ES and SPX charts, showing the different counts on the last wave, but there is no much (1-3 ticks) to the top. I can't believe that there are any investors willing to go long on Monday with the Greece situation. My chart shows a big sell-off before the opening. But by looking into the news, I would say on Monday there is no good news about the Greece bailout. Probably more negative news. On May 19 it must repay an €8.5 billion bond, and it doesn't have the money. Even if EU+WMF will bailout it for 60 billion., everyone knows that this will not help at all (of course after the GDP news). On the other side EU can't stay on the side and wait. But the closer we get to May 19, Greece will be under pressure, which will be used by EU to negotiate the conditions.
All and all on Monday or over the weekend we should get some news about Greece. Germany is also considering the exclusion of Greece from the EU. All politics, but for the bigger sell-off this is a very good situation to go long about 1150-1160 with the target of 1300+.
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