Attack Of The GTC Monster

Deep inside the murky bowels of the NYSE lurks a terrible monster bred for boundless greed and the accumulation of ill gotten gains. Due to its immense size and an over bloated ego it is suffering of an insatiable appetite that can only be satisfied by devouring the souls of hapless retail traders.

It is called the Fractal Monster – and when it threatens to strike you better get out of its way…
[amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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I have not been talking much about my Gothic Church Fractal on the NYSE A/D-D/A chart in the past few months. Reason being is that they usually occurred on the long side (i.e. on the D/A panel) and we have not seen much of a drop since last fall. However, the pattern that is now unfolding has a cunning resemblance of what we have seen before: Which is a strong spike up (above 6.0 on the D/A panel) followed by lower tape that is accompanied by a signal below 2.0 (which builds the cathedral part of the Gothic church).

Is it a guaranteed medium term long signal? I would not go that far but it surely benefits a scenario which would favor a continued melt up into late spring. The grizzlies had the bulls by the balls – so to say – and it almost looked like equities were going to drop a lot lower. But then came that ‘wtf spike’ on the Zero Lite yesterday and the tape hasn’t been the same since. My respects to our ‘friends’ over at 33 Liberty – those marines you sent in know what they are doing and sure know how to save the day.

Anyway, the pattern is favoring a continuation of the reversal we are seeing – but it’s not guaranteed. If you have been long since the bottom I know what you are thinking right now: Is this a motive wave up or is this push higher the B wave of a zigzag to the downside. Based on this GTC fractal I am tempted to say it’s a motive – BUT – as we are now on the 50% fib mark relative to the drop down we are in price territory at which Elliotticians would expect a reversal. I’m not convinced however. That A/D signal of 4.32 is pretty juicy and usually does not happen as part of a B wave. I am looking up from here – unless of course price is telling me otherwise. A breach of yesterday’s highs at 1309 would probably change my opinion. Of course if this is a motive then we are just getting started – so today should bestow us with an interested last hour.

Cheers,

Mole