Saturday, May 28, 2011

5/28/11 - EOW Update

EOW Update

I was able to do a little housekeeping on the charts and think I can finally rely on one chart for now. At least for now.

Minor 4 Option

My Minor 4 count has been the go to one. There are still 4 sub-options that I have ranked in order and color-coordinated.

Minor 5 Ending Diagonal

Here's something to think about. This is a chart I put together based on a count provided by Geno who currently posts at DinosETF. I took this count into consideration and applied the Golden Section technique.

According to EWI, "wave 4 often divides the price range of an impulse wave into the Golden Section. In such cases, the latter portion is .382 of the total distance when wave 5 is not extended and .618 when it is."

In this example, I am assuming W5 is extending and thus "the latter portion" is .618 of the entire structure. Should this technique prove to be valid, Minor 5 projects to 1433.

I'm not completely sure of all of this but the main reason why I posted this is because if one measures the length of wave 3 in this ED scenario, it's length projected from where I currently have wave 4 hits 1433 right on the money. So this may be something to consider along with other reasons that the 1400s has come up.


An illustration of a W4 dividing the structure into the Golden Section when W5 extends. See more from EWI on this here.


This was the bear count I had been tracking and is out as it is labeled due to Friday's little move higher. However, see the new one below. Bulls need to be aware of this one.

This is the most updated bear count and was brought to my attention by Andrew in the Chat room. This is the last chance effort for the bears near term.

Wave (2) is a running flat in this scenario so we have a nested (1)-(2) 1-2 down here. The next few days will be crucial.

Notice the two intersecting trendlines at 1337. Those could prove to be beneficial to this count. However, should the market rally out of the down channel and take out 1346.82, this count will be dead along with any longer term bearish count and further provide an edge to my Minor 4 options above.

Ok. That is probably it from me for the weekend.

I just want to take a brief moment to thank every military personnel, here in the US and anywhere else in the world, who currently serve and have served to provide the freedoms that we enjoy.

More importantly, I hope all of you take a moment over this Memorial Day weekend and pay tribute to those who have paid the ultimate sacrifice to provide us with these freedoms.

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