Wednesday, May 26, 2010

5/26/10 - SPX EOD and E-MINI Update

SPX - 60 MIN PREFERRED

SPX - E-MINI

 SPX MACD AND RSI DIVERGENCE

Not much to update tonight. It appears an impulse wave up has completed. I have labeled it minuette (i) of minute [i] of minor C. A pullback followed as expected and I believe is part of minuette (ii). 

So far the minis are up nicely for now (13 pts as I type this). I have an inverse head and shoulders pattern developing on the minis which also applies to the cash markets. 

The minis' wave 2 pulled back and retested the upper channel of the previous wave down and has so far bounced.  The cash has not done so just quite yet but most likely will at the open tomorrow or maybe it won't and start out with a wave 3 up. 

The inverse h/s target for cash is approximately 1140 and interestingly enough, a wave 3 or c up would approximately equal 1.618 *1 or a at 1140. 

For the bear count, I have this as a wave 2 up and the targets would still be the same since it would require a three wave correction up consisting of an a-b-c. 

I'm still watching the 60 min MACD and RSI divergence. RSI also backtested it's trendline break. We'll see if there is any follow through.

That is all for now. I'm tired. It was long day. Remember to just keep an eye on both counts. They are still working on valid structures in the same direction. 

GL!

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