Thinking in terms of the TA Bible Edwards/Magee, Jesse
Livermore and others, I’d say that upper white trend line is very very
important. Failure to hold (failure would be at 3% below the line or
roughly breaking below 770) it would destine a trip south to the lower trend
line at least. And I’ve drawn that upper trend line pretty
conservatively. Others might say a properly drawn trend line would have
the market currently well below it.
Now, consider it a Wolfe Wave triangle and the objective
would be that green trend line. IF Armstrong’s April 16 date is
going to be a high or a low and McHugh’s March 26 Phi date is a high (and
I think it is), it looks like a low would fit much better and give rise to a
more powerful wave 2 or B rally. And I don’t see any Wolfe Wave
triangles in the 3 month time frame preferring a higher high. Once a lower
‘point 5’ is established on the lower trend line, they you have a
good upper Wolfe Wave target line but that requires a drop first.
Finally, if every new low must be retested as all the
pundits like to say. Where is the re test of the March 9 low?
