Friday, August 12, 2011

7:50 AM Update

7:50 AM Update

I mentioned in the chat room earlier this AM that a muted response to the Michigan numbers is bullish. In addition to the reaction, a defense of 1170 favors the bulls.

Note a potential descending triangle is potentially playing out here. This would be considered a continuation pattern.

The more bullish option still calls for a nested 1-2 i-ii. Should the descending tri play out (in reality this would just be a complex corrective for ii since wave 2s do not form tris), a rally in what would be wave iii of 3 should come.

If not the more slightly bearish pullback is looking for a move to either 1165 or 1153.

Bullish Option

Slightly more bearish option

6:38 AM Update
1 Min

One way I see the count. Possibly pullback before Michigan numbers and then rally on that news

1 Min

The more bullish view.
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