Tuesday, March 13, 2012

3/13/12 - EOD Update [10:32 PM Update: BAC]

[10:32 PM Update: BAC]


BAC
Looks like BAC broke out of its wave 4 triangle. I posted this chart last week. Gunning for 8.88?


 [7:00 PM Update]

ES
ES is backtesting the broken channel. Lets see what happens.

EOD Update 


Today certainly was not boring like yesterday. In yesterday's EOD Update, I wrote, 'I'm still watching the rainbow count options and if the bears do not bring some form of sell off tomorrow, the red option may be looking at a gap and go up tomorrow for wave 3 of [5].' Gap and go it did.

As much as I would like to say the red option is in full swing, the blue and green are still hanging on to dear life. I will say this, the red option is the primary until proven otherwise.

Therefore, the bears need to take out yesterday's low to confirm blue or green are still in progress before the market clears 1400. If the market clears 1400 prior to taken out yesterday's low, odds become very very small that an expanded flat or running triangle is in play.

SPX - Rainbow
I've adjusted the potential triangle formation and keep in mind that upper TL for the tri is arbitrarily drawn.

SPX - Daily Primary 


The bigger picture for reference. Note the options here.

1. Intermediate (B) finally complete
2. Minor 3 green complete
3. Minute [3] complete.

The thing we should be looking for options 2 and 3 is that no 4-1 overlap occurs, if the market is planning to push higher.



SPX - McClellan Breadth Thrust
I continue to watch this especially if the impulse count is in play. A reading of +50 will indicate a third breadth thrust is in. If so, 1440 would be a likely target.
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