Tuesday, May 25, 2010

5/25/10 -SPX EOD




Where's the crash? It is nice sometimes to see wave counts play out the way one expects. 

Last night I posted a series of E-mini charts showing the large drop that followed through this AM on the cash markets. We got what we were looking for, at least for now. 

Many of us were looking for a final 5th down today. It appears as if we may not have seen one, but I think 5 may have truncated as an ending diagonal. I'll post a 5 minute chart later highlighting this.

Admittedly, my Fib projections were a tad off but the EW channels provided some guidance as where we should expect minuette (v). 

Based on my preferred count, Minor B is most likely complete and we should now work towards a final Minor C wave higher. We should be looking for 5 waves up. It may be a straight up impulse or an Ending Diagonal. Both consists of five waves. 

On the second chart notice the 60 min macd positive divergence. I had been pushing this in the CiL and posted this the other day. It turns out we had a double positive divergence. 

As for the bear, we also saw possibly the completing of minute [v] to end Minor 1. Now a sharp retrace for Minor 2 should be in progress. 

Maradona from the CiL pointed out in comments on yesterday's post that price touched a low equivalent to 5.7% below the 200 SMA, similar to the drop back in Aug 2007 (Thanks for correcting me again Maradona!). See this post on that. Mara, thanks for the heads up. I'll take a look at that chart again.

Check back later for more charts.


  1. wanted to share the following with you, just in this Blog/CiL....oki...??
    We made a low in November 08 and in March 09.The first one was when Commodities,including Gold/Goldstocks made the final low. The other,March 09 was the SPX and broad Indices. T theory somehow has a time symmetry price projection, together with cycle turn points accordingly. We made a high on April 26th.....17 months from the 1st low and = # of months from the July 07 top. We then double topped in October 07, with a double bottom (quasi) in March 09....again 17 months....The next top for everything being squared out, would be July 26th. + - 4 days. This could well be in line with your wave C up.....targeted
    above in your bullish count....FYI.... regards

  2. = # of months from the July 07 top to the Nov.08 low....( clearer)....mara

  3. Note that the time span between July-October, may play again between April-July....and close enough to the time span between both lows...Mara...