Wednesday, September 28, 2011

EOD Update [4:23 PM Update]

[4:23 PM Update]

Last Friday I posted an ending diagonal option for the red count. At the time it was a little too premature, however, this version would work beautifully. The "repeat?" chart that I posted below got me to think about this option again.

I'm still tracking the blue count option as the primary but will switch to this if the "repeat?" chart below plays out. This would make a lot of sense.

Red 2
EOD Update

Now how about that. Both moves today were exactly what I was looking for in the market. In last night's EOD Update and this morning's Pre Market Update, I was looking for a quick bounce for wave b near the 1180 area and laid out the Fibs to go with it and then a pullback for wave c somewhere near the ball park of 1163 - 1155.

Price came to a rest, for now at least, right near the 1155 mark in what counts out to be a three wave structure. As you can see in the 10 min chart below, it counts out as nice potential wxy corrective move or as in the 5 min chart an ABC.

Notice I do have  a more bearish nested 1-2 i-ii down count on the 5 min? That goes with the red option.

Obviously the corrective count option goes with the blue count option, which implies that wave (x) of (Y)/(C) is complete and wave (y) of (Y)/(C) should start with a rebound sometime tomorrow.

Tomorrow I'm looking for a minimum bounce target of approximately 1165 or so. Please see below for that reasoning.

The chart I have posted as "repeat?" is worth taking a look at should the market need one more push up but is capped near the descending red TL, which is now at approximately 1189-1186.

The next few days will be do or die for the blue count though, at least the way I currently have it labeled. I see one more potential for a deeper (x) wave but won't address it unless need be. So for now, the primary count for blue is that wave (y) of (Y)/(C) is in progress and that will be up.


10 min

5 min

Repeat?

Blue Count Option
Notice that if (x) is complete, it found support at the intersection of the channel and green TL.

Red Count Option
Red is in the process of working out wave iii red. The 5 min chart above shows the subdivision for this wave.
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