Friday, September 30, 2011

EOD Update [4:17 PM Update]

[4:17 PM Update]

I forgot to include the bigger picture for perspective.




EOD Update

Looks like the market wanted to head back to the lower end of the range to end the quarter.

My alternate count on the 10 min that was posted yesterday appears to be the best option very near term. This most recent decline is still best counted as a corrective mess so I am assuming there will be another bounce. How high depends upon which option: blue, blue2 or red below is in play.

Range Bound
What a corrective nightmare. The most recent decline has now retraced 78.6% of the previous leg up. I believe this retracement so far is almost right on the money.

If this is going to continue in this range, a bounce here or very soon would not be unreasonable to expect. Notice that the market now has a lower high and higher low (for now) in place. This may be setting up option blue2 below.
15 Min

The latest drop still counts best as a corrective wave and I believe is about to complete a tiny Ending Diagonal   near the bottom here.

This either completes an Ending Diagonal or Leading Diagonal. Either one implies a large bounce should be in store. A 78.6% retracement would take the market back to approximately 1180.

Blue Count Option
This option is still very valid especially with the 78.6% retracement so far of what may be wave (x).

Blue2 Count Option
This count should also be watched since the market now has a lower high and higher lower, which implies a possible convergence.

Red Count Option
I've whittled down the red count to just one. I'm still unsure if wave ii is in progress or wave iii of the larger ED. Either way, this also requires a bounce, which most likely will be towards the upper red TL.
blog comments powered by Disqus