Friday, February 19, 2010

2/19/10 - EOD Update [10:40 PM PST Update]

[10:40 PM PST Update]

This FreeStockCharts tool is pretty sweet! Was playing around with it tonight and decided to chart the move off today's top.

I'm really thinking this is a pretty good Leading Expanding Diagonal. Read below for what the implications are for this pattern.

But even if this is true, I'm not sure how significant it is considering the degree (low) of the wave. If it were a larger wave, I would take that as very bearish.

Looking forward to what next week has in store for us.



Leading Expanding Diagonal?




Are we there yet? Apparently not or maybe.

I made some adjustments to the wave labels and to be honest, waves iii and iv black are sort of eye-balled. I am going to label today's high at 1112.42 as the minute [ii] top for now and let Mr. Market prove to me otherwise come Monday.

One interesting wave structure to note is the one off the top. I think it may qualify as a Leading Expanding Diagonal.

Per EWP (Pg 40), "This form appears to occur primarily at the start of declines in the stock market."

"A leading diagonal in the wave one position is typically followed by a deep retracement".

So on the second chart, price quickly retraced almost 78.6%. I do show that wave ii after the LED may have only completed wave a and b before a final c up to complete.

The alternate to this of course is that it is just another expanding triangle of another wave iv.

The last chart is an update of the Fib confluence. It appears all other trendlines and fans are still being respected except for the arc.

I'll post more over the weekend. Have a good one.

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