Wednesday, April 13, 2011

4/13/11 - Pre Market [8:05 AM Update]

[8:05 AM Update]

Perhaps one more little leg down for c of 2/b/x?
[5:25 AM Update]

SPX - 10 MIN

As mentioned yesterday, I could not count an impulsive move off the bottom. However, one potential count would be a leading expanding diagonal for wave 1 up. However, it may easily just be a corrective expanding diagonal as well.

Just something to keep in mind should the inverted head and shoulders be playing out and should yesterday mark the bottom of the corrective move down.

Pre Market

As suspected yesterday, the market will bounce at the the trendline connecting both shoulders (red) along with the 20 day SMA.

The question now remains what does this bounce represent? Is this only an x wave up or the beginning of a new move to new highs?

I'm still seeing folks trying to label the wave from the 4/8 high to low as a wave 1. Not sure why that's being done when it is clearly a three wave affair best labeled as a wave w as part of a larger double zigzag down which most likely ended yesterday.

My primary thoughts are that yesterday ended either a wave 4/B/X of some degree and will work towards a new high. However, if there is more downside to come below is my best interpretation of what to expect at the moment.

Minor 3 Top Option

This chart above would be considered my top alternate count. The proper way to label the move off the 4/8 high would be a wave w and not the start of a new impulse down.

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