Monday, November 22, 2010

11/22/10 - EOD Update #2 - Count Options [EDIT 7:25 PM]

[EDIT 7:25 PM] See updated head and shoulders chart down below

I have updated my count options and relabeled option 1a, previously seen here, as option 1 since it currently is my preferred. I still see a few others as well which are seen below.


Option 1

Today's pullback completed minuette (b) and the mini rally into the close completed subminuette i of minuette (c) of minute [b].

Minute [b] may target either a 62% retracement of [a] near 1026 or minuette (c) of minute [b] may extend (a) of [b] between 1201 -1211 if the typical extension ratios kick in.

Notice at the top minute [b] may still retrace all of [a] and minuette (c) of [b] extends (a) of [b] a 1.618 times. This would set up minor 4 as a flat potentially so keep that in mind.

It appears the 30 and 60 min MACD signaled a buy today near the close as well.

Option 1a

Option 1a is very similar to Option 1. However the difference is how the subwaves for minute [b] is counted.

If minute [b] consists of a w-x-y corrective, it results in a slight difference on what the wave structure would look like to complete minute [b]. See the difference compared to option 1?

Option 1b

Option 1b assumes that minuette (b) may still be in progress. This implies that one more pullback is in store in a subminuette c down.


Option 2

Option 2 implies that minute [a] of Minor 4 is not complete yet. This is a way to 1150 if the market wants to go there.


Minor 4 Roadmap

Here's an update to this chart, which I have been using as a potential road map for Minor 4.

CHANNEL

Here's an update to this channel I have presented in the past. The market found support at the mid channel again. Notice the MACD histos are sloping up?

But also notice the potential head and shoulders pattern that may also be developing? I posted a chart with this pattern last Thursday. Target is 1111 if it plays out.

[EDIT 7:25 PM]

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