8/20/10

8:00 AM

Here's a follow up to this chart. We have a neckline break. If this follows through, it looks like we may be seeing 1010 again.

8:01 AM

 But if the market manages to close in the green, that current candle may turn into a hammer (reversal) and close above the neckline creating a false neckline break.

Nice, we have that [5] wave down as anticipated yesterday. That is a clear 5 waves down for what I have labeled as subminuette iii. However, the only problem with that label is that iii is pretty short compared to i. Though it hasn't violated any rules, it almost looks like just [1] of iii or it could just be wave (c) of minute [ii] per the alternate label.

If it is the alternate, (c) = .618*(a) at 1062. 

One other alternate is that this is subminuette v and the entire structure began on 8/9 at the 1129.24 high.