Thursday, January 6, 2011

1/6/11 - EOD Update

EOD Update

Option 1

The market remained above the 1270 level again and only chopped sideways. This leads me to believe the market may still shoot for 1290.

As ugly as it is, Option1 is still valid and still the primary.

There is no 4-1 overlap there. However, something to keep in mind is a potential wave 5 ending diagonal here since there look almost overlapping.

See the INDU chart below for one option.

5 Min

Here is an internal look of the final fifth here. We'll see tomorrow if it pans out.


Alternative1

Here's another alternative I presented in the chat room today. I think it has potential and (iv) is completing a combo corrective similar to the pattern just below.

We have seen this a few times now over the past several weeks. One such example was back near Dec 7.


Is alternative 1 repeating this combo corrective?

Wave 3 Extension Alternate

Still watching this alternate as well.

5 Min Bear case

This would be the bearish setup that we cannot ignore either. Until a new high is made, this is very possible. This is a chart of the INDU but also applies to SPX.

Another thing to keep in mind with scenario is the head and shoulder pattern potentially forming here. The market is sitting right at the neckline.

INDU

Here is the INDU ED.

Gotta split for now. Will try to post a little more later tonight.
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