Yesterday, my near term bullish and bearish count options indicated that a low was most likely in. In fact I believe I was calling for a bottom last Fri.
I will continue to post just the near term options because there still are a multitude of options with the bigger picture.
Based on this option, I'm looking for a wave c green up with a target of 1224. C=A here as well as makes for a nice 50% retracement of the 7/7 high to 8/9 low. See the larger count here. Notice I have iii = i at 1172. This is also near the 13 day EMA which is currently at 1174.60. This will be a level to scale over to continue to push for the bullish count.
Based on this option, today's rally was part of wave 2 up of 5 down. If this count is correct, I'd expect a rejection at approximately 1175. This is the 62% retracement of wave 1 of 5. Wave c of 2 = a of 2 here as well.
Clearly a rally above 1209 will rule this count option out and solidify the 8/9/11 bottom.
It appears the 'W' bottom on the hourly is playing out. Note there is also an Adam and Eve double bottom in the works. A break above 1209 would confirm this double bottom pattern and would project to approximately 1300.
It appears the 'W' bottom on the hourly is playing out. Note there is also an Adam and Eve double bottom in the works. A break above 1209 would confirm this double bottom pattern and would project to approximately 1300. Keep the daily W bottom pattern I presented on 8/19/11 in mind as well. The 20 SMA is currently at 1200. Should the daily break through, that would confirm step 4.
Daily
For more information on the W Bottom see stockcharts here.
