Monday, June 14, 2010

SPX EOD [8:30 PM PST: MINI UPDATE]

[8:30 PM PST: MINI UPDATE]



Ok. I was able to get a quick peek at the SPX minis (June contracts). The count looks like it fits my optional SPX count better. See here.

If this is the correct count, the minis appear to have completed a leading diagonal wave i up at subminuette degree. So far a retrace has backtested the neckline.

If the LD is complete,  a sharp (78%) reversal for wave ii should be expected. However, if the head and shoulders pattern is in play, the structure looks like it needs to head a little higher to hit it's target near 1120 first before a pullback.


Here's a quick look at the Sept contract. It broke out of the channel and is currently backtesting the upper channel.

We'll see what happens this week.





This is the only chart I'll probably get to put out tonight. Please reference my overall bull and bear counts here.

The main structure I'm focusing on right now is the one off the 1042.17 bottom.

Earlier today in the CiL, I proposed that a Leading Diagonal or Ending diagonal was in play. With that structure, we were looking for subwave [4] to complete near 1085 since that would represent a 38.2% retracement of subwave [3].

If we see a bounce at 1085, subwave c of [4] would = subwave a of [4] and converging trendlines would remain intact.

If the market falls any further the trendlines will more likely form parallel lines. If that is the case and if the pullback remains above 1077.74,  a case can be made for an impulse up.

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