By Chris Diodato – TradersBase.com
I swore to myself that I wouldn’t try and predict the reaction to the jobs report tomorrow. Of course, the lure of the markets couldn’t keep me away. Here’s my prediction for tomorrow, and why the much publicized “double zig-zag” formation is likely wrong. Unless we see a strong gap tomorrow, watch out for selling.
Here’s what I see. And bear in mind that I looked deeper into the counts, and found that the second wave a (after the x) was an expanded flat, so I was measuring from the wrong place. That makes yesterday’s wave high an EXACT 261.8% of the total distance of the a wave. I did the video on the spot, so I said it was about two points off.
Here’s the video analysis, and why I believe at this point, the jobs report may not be what the market is hoping for. We will see. If markets continue up, no problem, likely just means I’m a little early in the prediction.