[7:56 PM Update]
If wave 4 blue is underway (5 min chart at EOD), a target of 1282-1285 may be in the cards for the following reasons:
1. It will be a 50% retracement of 3 blue
2. A backtest of the red descending trendline that connects the 5/5-5/17 lows.
3. The h/s target
4. The lower pink channel
I don't recall if I posted this here on the blog or in the chatroom. Anyway 1320 looks like it may have a target on it's back but we'll have to see if it provides solid resistance.
This channel is relevant and I'll be watching for a break of the descending MACD trendline to confirm a more bullish move is to come.
A closeup of the descending channel in green shows that the market climbed back over the mid channel. Target at the top is near the 50 SMA.
[4:29 PM Update]
RUT Daily
EOD Update
I'd say that was a pretty bullish day. A daily MACD buy signal occurred today. A follow through tomorrow should confirm.
The 200 day SMA proves to be a floor for now and there are counts to support them. Yesterday the 20 day SMA looked like a good target and sure enough the market headed there.
The 5 min and 60 min counts played out. I was expecting a wave 3 up and that is what the market provided.
On the 60 min below, it appears wave 3 extended a near perfect 1.618*1. So if that is the correct count, we may see some chop tomorrow for wave 4.
5 Min
It's possible wave 4 may be forming a triangle as well.
60 Min
Minor 4
Bollinger Bands
Right on target as suspected yesterday.
I posted this channel a few days ago. The 200 day SMA and the mid channel support gave me a reasonable belief that a rally would ensue. Now the question is, are we in wave [d] or working on Minor 5.
Bear Count
This is still in play but I'd say weakening in it's credibility with the daily MACD turn. A daily confirmation tomorrow and this will really fall to the wayside.
