Wednesday, May 25, 2011

5/25/11 - Pre Market

Pre Market
Last night I pointed out the possible +ve divergence developing and sure enough it did. That doesn't mean price can't go lower as you can see previously a quad diverg developed before a bounce.

ES appears to have developed five waves off the overnight low. So I would expect at least another leg up at minimum equal in length to this bounce which I believe is approximately 11 points.

However, given that there are wave counts that may consider this corrective move off the 1370 down as complete, it should be watched carefully.

Given this scenario, we should keep an eye on this count that was posted last night:

60 Min Corrective Option
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