Tuesday, May 3, 2011

5/3/11 - EOD Update [9:40 PM Update- SLV]

[9:40 PM Update- SLV]

SLV

Was reading an article on the PMs just now and it got me thinking about looking at silver. I just put this chart together in 5 mins and think it may be a decent count.

If SLV is in a wave 4 of 5 of [3]/[C] pullback, it should not retrace back into wave 1 at 35.78. Well see.

I may like the alternate count better.

If I forget to update this chart in a week or two, please remind me.

[9:25 PM Update]
YM (Dow futures) is sporting a potential triangle at the bottom of the current decline. This leads me to believe that an x wave (or b) is forming down here before an additional leg down is to come. Or it's completing a wave y triangle as depicted below.




I believe we have seen a larger version of this before back in late Feb/early Mar this year. In that situation, the market broke down.

The trendlines should provide guidance once the market breaks through one of them.



We'll see if ES is intending to do the same thing.

EOD Update

Looks like the head and shoulders pattern finally played out and hit it's target today of 1350. Based on the 5 min chart below, that may have wrapped up a double zigzag for wave 4.

5 Min


A daily hammer candle formed today so confirmation tomorrow will be needed should wave 5 of [3] be considered in progress.

Minor 5 Option

I like this option the best right now.


Minor 4 Option

But I remain mindful of this option.


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