Monday, February 28, 2011

2/28/11 EOD Update [5:02 Update]

[5:02 Update]

INDU double inverted head and shoulders?


Looks like maybe working on five waves up? Just not sure if the squiggles support that.

[3:28 Update]

Another way to count the squiggles since the 2/24 low. I had a discussion with Prasad from the room on this possibility. Though I still favor the corrective count, this one surely may apply.

On the 10 min chart below:

3/C = .618* 1/A at 1342 or
3/C = 1/A at 1355

10 Min

[3:12 PM Update]

TRANS - Daily

A five wave count up for Trannies is looking pretty good here.

EOD Update

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Daily Bollinger Band

The market managed to close above the 20 day SMA once again. The daily MACD histograms are beginning to show a small kink in the down trend. The top of the Band is indicating 1346. Is that what the market wants?

Yesterday, I posted these options that I would be looking at for today.

1. Market hits 1325-1330 and pulls back. If the next leg down holds above 1294 and then bounces up and takes out 1330, most likely that leg up will target at least 1340, which would bring the flat into play.

2. Market hits 1325-1330 and then trades between 1294- 1330 over the next several days, a triangle may be working out.

3. Market hits 1325-1330 and pulls back taking out 1294, then 1280 is most likely where it is headed.

Obviously all three options are still in play but given today's action, I am still favoring option 1.

Daily Primary

Here's an updated look at my daily primary count. Wave (b) of [4] has currently retraced wave (a) by approximately 72%. 18% more and the flat requirement will have been met.

5 Min

Here's closer look on the 5 min. As I posted in the chat room today, the purple trendline was going to play a role and need to be be watched.

The market jumped over it this AM and pulled back before bouncing off this line.

I still believe this is all a corrective move so the primary thought is that this is a wave c of y heading for 1335-1340.

We must remain flexible though because it may turn into a more complex corrective and I may have to relabel it as a wave y up.

Ok. Gotta run for now. I'll try to post more charts later.
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