Wednesday, September 29, 2010

9/29/10 EOD Update #2 (11:15 PM BOLLINGER BANDS)


Bollinger Bands

Those bands are tight which is signaling an explosive move is in store. Which will it be? A thrust out of the triangle or a breakdown out of the ending diagonal?

9:26 PM : NASDAQ

Here's a long term view of the Nasdaq Composite. Notice there is a big difference with this index vs the SPX or the DOW (See my DOW chart here. It's sporting a potential expanding triangle)?

Either we are seeing a very large triangle in the works or Grand Supercycle 4 completed at the March 2009 low.

There's a very large looking inverted head and shoulders pattern developing. This may be seen on the SPX (See my SPX version here) and DOW as well. The target for this IHS is approximately 4000.

Why would we care? I think this may support a Grand Supercycle count for the SPX as well as posted here over the weekend.

The NDX is pretty similar and looks like it is about to break out of its IHS.

Ok here is an update to my current count. I changed the triangle subwave labels to the primary and must correct my previous post. Since I added the Fibo for wave i (red). v=i at 1166 and not 1175 as previously posted. Wave v=.618*i at 1156, which is just about 1158, a level the bears are watching since per the bear count C=A here.

The purple line represents the triangle thrust target. This sits at 1174.
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