Wednesday, August 5, 2009

Wave ii Double ZZ




So far, the new alternate count is working out. This may be a wave ii double zz. 1004 will put this retracement at a nice 78.6% retracement from the move down from yesterday's high.

This chart, which I did not edit from the previous one, shows the final wave c extending a little further outside of the trendlines. This may be an expanding triangle.

Notice the inverted hammer at the top. At a lower degree I have that as the top of wave iii for this final wave c. It was beginning to turn to form wave iv and possibly finish up wave v of c somewhere near 1004.

So the big question now is, is this a wave ii? If so, we should expect a wave iii and that would correlate with the breakout of the expanding triangle, or based on the pattern I was primarily trading, an inverted flag.

We may see it begin before the market closes. I won't be able to update the chart until later tonight.

I guess we will see what happens.

Again, a break above yesterday's high (1006.92) and this larger ED is still playing out. A break below 994 and we may be in a new impulse down.

GL!

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