12/20/11 - EOD Update [6:06 PM-Update]

[6:06 PM-Update]


See comments below on the weekly triangle.


[EOD-Update]

SPX - 30 Min - Primary

So far so good. The market finally broke out of it's corrective channel and looks to have put in wave 1 up. There may be some room for a little more upside and I'm certainly looking for signs of a extension.

Should wave 1 be complete though, I'm looking for a pullback towards the 50 day SMA near 1230. This also lines up well with a backtest of the 12/7-12/9 trendline.

Though the bulls have reclaimed the 50 day SMA, they are not out of the woods yet. They need to clear the TL from the 7/6 and 10/27 highs or else the bearish weekly triangle option may be in play (see below).

SPX - Triangle Option

This option is still in play. Don't confuse this one with the bearish one below.

Repeat?

The last two rallies resulted in a three day white candlestick rise. Will we see the same again?

SPX - Bearish Weekly Triangle

The bulls need to be aware of this bearish option and must clear the 7/6-10/27 TL and ultimately 1292 to void this option.

[6:06 PM Update]

I forgot to highlight the fact that wave e green has now retraced wave d 62% right on the money. So if this triangle is in play it may be deemed complete.

That upper trendline will be key along with 1292.