Thursday, September 29, 2011

6:03 AM Pre Market Update

6:03 AM Pre Market Update

GM. ES so far has invalidated the start of an impulse wave down since what would be considered wave 4 has overlapped into wave 1. However the more bearish setup here is the nested 1-2 i-ii down.

Last night I was looking for a minimum bounce back towards 1165 (cash) or so. Looks like that objective should be met. This would make for a wave (4) that targets the level of the previous degree wave 4s. Notice the TL that may act as resistance as well on the 5 min chart below?

However, 1169.88 is the line in the sand for the impulse wave count down. If that is violated and the market so happens to rally to the underside of the TL on the "repeat?" chart below, the new red count option I posted last night becomes more credible.

Keep in mind the blue count remains valid as well and still tracks as the primary, however, the red2 count must be given some equal consideration as well as a more bearish nested 1-2 i-ii setup.




5 min

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