C, DAL, TWTR, Z updates 10/5

C: reached the ideal 1.618x extension for a possible minute-iii of minor-3 of intermediate-v wave. RSI5 is max overbought, the MACD is max high as well as the MFI is max high; suggesting this iii of 3 top as well. Nevertheless, this market has shown wave-extensions are very possible. Minute-iv should now ideally drop to $74ish before minute-v targets around $78. We should then see a multi-day correction for minor-4 back to $74-$75 followed by minor-5 to complete all of the impulse up. This pattern fits very well with where the S&P currently is as well.

C daily

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DAL: Stalled right at the resistance zone and inside the ideal (blue) b-wave top area. Doesn’t confirm this is  a b-wave top, as price can still move higher, but for now it’s something to be cognizant off. When price targets are reached, stall in resistance and Fib-target zones, instead of moving straight through them, it’s often time to take a step back.  A break above the July ATH will most likely mean major-5 is subdividing, unless we’re dealing with another irregular flat wave, whereas a break below the September low confirms major-5 (primary I is in). Bottom line: target zone reached. Time to be cautious. Note: the moneyflow index is now much lower compared to mid-September. Although this can change, it means less money is being put into DAL at these levels than at lower levels. That’s often not a good sign (compare to the MFI of C above…)

dal daily

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TWTR: Looks like it wants to sub-divide higher with now a c-wave underway that if c=a targets the ideal $19.25 level (gap fill). I still have a hard time counting the advances as 5-waves. Clearly, for example, the advance off the mid-August low was 3-waves and thus corrective. This the problem with corrections: a, b and c waves can do what ever they want. There’s no real rime or reason when the unfold, only after the fact does it all make sense. Thus profits should be locked in quickly when trading corrections.

TWTR daily-detailed

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Z: Did price fall short of the ideal target? If this is (red) intermediate-iv of major-a, it should have topped indeed. A drop below the 200d SMA is a first sign of worse things to come. Price can still extend into the ideal b-wave target zone, but for now the follow through is not there with what appears to be a typical b-wave spike high on the RSI5

z daily