Z wave underway?

0617spx

http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=3&dy=0&id=p76611673066&a=266398464

It appears that the gamma wave was arrested 3 days ago by the long range day which threatened to blow the market away, then recovered over half the range by day’s end.  This is a bullish event.  And kicks off what appears to be the zeta wave.  Today, in keeping with the contrarian controlled market we are in a sharp sell off occcurred and the market transversed a large range.  Candlestick analysts identify this formation as a spinning top and  characterize it as a formation of indecision.  This is not particularly positive for the z wave, leaving the next few days to confirm or deny the z wave.

Catching the turn  obviously is the most profitable trade, and zeta waves are usually pretty dependable — but that depends on the general market context.  When contrarians are in charge who knows.  The conservative trade is to wait for the downtrend line to be broken.  Presumably we should know by Friday.

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