Neil,

You're on to something there - something I don't discuss publicly because they're difficult to explain.

The situation you describe can create a powerful move, some would call the "Slingshot Trade"

For me, I have trouble finding those in real-time and often only see them in hindsight. They're quite rare but sometimes do lead to powerful moves that most people never see coming.

Mike,

So many eyes are watching these levels and who (bulls/bears) are winning. It's such an epic struggle that is throwing almost everyone off-balance.

We've gone so far up that we 'need' a retracement down, but we just can't seem to get a meaningful down move.

Needless to say, that makes trading difficult. We've gone too far to get long (it seems), but we just can't get a sustainable down move. Bulls just aren't giving up!

Neil,

I love the 3/10 Oscillator. It's probably most similar to a Rate of Change indicator or the indicator called "Momentum." But the trend line (16 period) also gives some added benefits you can't get from other oscillators. Plus, it's unbounded (doesn't travel in a range of 0-100 like almost all other oscillators) so that also makes it unique.

I call it a "Three in One" : A Momentum Oscillator, A Trend Indicator, and a Swing Indicator.

Thanks - I'm glad to have you as a reader!

Neil,

What's funny is that I rarely do swing trades (because of overnight gaps) but I was sooooo certain we'd hit major resistance at 805 that I got long the SDS and planned to hold for a test of the lows. And of course we get a big gap against me on Monday, showing me exactly why I shouldn't stick my head out of the intraday timeframe!

.... and mate one more thing, though I have been using the divergences from a long time, and I know they work most of the times, I somewhere read about the hidden divergences, where its somewhat opposite to the regular or the normal divergences. Like ... when the price makes a lower high and the oscillator makes higher high, and the price makes a higher low and the oscillator makes a lower low. This hidden divergence thing is very new to me, always knew the regular ones. I was wondering, maybe when you could find some spare time, you could throw some light on these hidden divergences. Thanks & Cheers

The move back above 805 is rather strange for sure, but it would appear that we simply retraced roughly 61.8% of the (A) wave down with this (B) wave back up into the close.

Tomorrow's first hour will be key!

Hi Corey ....
yeah, the break above the 805 put me too in the "dear in the headlight" kinda situation ...lol .. anyways as always I had my stops at place. Anyways, I'm also waiting for your take on the Nifty after this strong rally, especially the EWT counts on it, as I'm very new at the EWT. And I want to thank you for introducing everyone of us to this new MACD indicator with 3,10,16 settings. I have been using it for past few days, and have relaized that it's anyday better than the conventional MACD, and infact now I somewhat find your 3/10 indicator preforming better than the stochastics and RSI too. Thanks a lot, mate.

Regards,
Neil

Vasu,

I'll try to do a couple of scenarios for tonight or tomorrow morning's post. Breaking above 805 threw me for a loop!

Cory !!!

Many of us are waiting on the updated elliot wave count on the S & P 500 . Please take your time but surely do suggest your intrepretation