19.12 – 2008

Pretty interesting thing started to happen actually, just when it just looked alike too boring. Firstly, SPX still keeping offering these bear diagonal shorting setups time after time – which are my favorite one´s to drop down, even they could be opposite of main direction movements I like them as they come´s down reasonable faster that uproads, besides this last one was also doubletop.

They usually allways corrects 50% as did this one too, then they allways offer some long reversals.

More interesting was certainly Eur-Usd road which I pretty much missed, traded perhaps maximum 300 pips out from there, 61.8% retracement from 1.600 gave 1.4720 and today 500 pips correction for it, I think this is guinness record for one day movement. If you did swing these wave or one of them, you´re made a small fortune. So it was yesterday 500 pips movement to the other direction pretty extreme – certainly nice volatility in FX market !

However, first and bigger SPX diagonal gives some reason to stay alerted. There´s risk exist, this completed pattern could be one big “A” wave pattern. Unfortunately complete pattern is too complex to fit for waves for me, but at least very last part of double top looks mini size of bearish HS also and it´s corrected as did smaller wedge. What about this bigger one then ?