Tuesday, January 12, 2010

1/12 - E-Mini Pre-Market [EOD 4:00 PM Update]


[EOD 4:00 PM Update]

Just wanted to add some notations. If price breaks above 1138.25, the count I have labeled will be voided.

[EOD Update]

By the end of the day, I show minuette (iii) complete at the H&S target. The bounce off that level is minuette (iv) in progress. A good target would be the neckline again, which would place minuette (iv) at a 61.8% retracement of minuette (iii). I didn't get a chance to place the Fibs for that but that is what I believe is the case.


[UPDATE: 9:48 AM PST]

I'd say this H&S played out nicely. Notice the backtest of the neckline and then further selling.

So the green line is the targeted area. If this is a clean impulse wave down and if it bounces at the H&S target, a 38-50% retracement may result in another backtest of the neckline. This second backtest may be wave 2.



Looks like the E-mini decided to follow through with some selling last night. The count continues lower and I show a possible H&S formation. The target is highlighted in green.

Will have to see how intense the selling is. If the SPX follows through and takes out 1131.32 then my alternate count can be canned. This would increase the likelihood that a trend change has arrived.

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