8/19/10 - EOD

730 PM Update

Here's another look at this count I have also presented. I like this option as well. Along with the count below, both imply some more downside action, however, only down to a strong support level near 1000.

In this case above, 1040 may be a key level. Wave c of B (red) = a (represented by the blue Fibs) right at that level. I moved the red Fibs, which represent A red to project for C red. If B completes at 1040, C may project back to 1114 (.618), 1160 (1.0) and 1233 (1.618).

So until we get a clear and decisive break out of this range, all these various counts are available.

At the moment I really like this chart. I'm looking for an impulse down and so far the market is clearly printing a very clear one to count. The target for (c) of [y] down should be = or approx 110% of (a) of [y], which is at 1010 -1000.

The alternate for now is the minute [i] leading diagonal, with the current pullback a minute [ii] down, which should be sharp and retrace [i] nearly 78%.

The MAs do no look bull friendly. As I've posted before, it is a battle of the head and shoulders.

I'm beginning to really like this b wave triangle options. I moved the lower trendline down to represent a lower subwave d. This count fits with the larger picture below.