Test of low ahead+ EW

Sat Feb 17^{th 2018}

                                     ^Scenario’s based on the past.

Looking for big drop of 307 +/- SPX points. Next week a holiday week is big compression. Drop should take 8TD till March 1st-2^nd.

We could just see a double bottom.

What would make this scenario wrong?  If we close above SPX 2763.39

What do I see?

ROC,RSI,CCI,A/C,MACD weakess after 5 fibs of advance.

OBV & MFI too strong

We hit the 200 dma now back to 25 dma or 80% dma up rally.

Looking at the wave chart we see us at circle of danger .618

We see wave (2) 2839 – wave (3)  2532 or 307 pts.

If wave  2&3 =307pts then wave (4) to (5)- 307 pts roughly.

We could be at SPX 2454/2426 some time in the next 8 TD

If we take 8TD to hit a double bottom that will be it.

We then rally sharply to new highs, or a slow rally probably offers a failure to newer lows.

Jerry O