3/26/12 - EOD Update [2:25 PM Update]

[2:25 PM Update]

SPX - 10 Min Flat/Triangle Option

Earlier I wrote, "The issue with this option is the fact that the leg up so far off 1386 looks impulsive. What could happen first is a quick little pullback and then one little leg up to turn this into a larger three wave structure to complete wave b."

Hopefully this chart provides the visual aid to go with that explanation.


EOD Update

In last Friday's EOD Update, I mentioned there was an outside chance of a gap and go move today. The market obviously opted to go with that call. On a 10 min time period and up, the move off 1386 certainly fits as an impulse count up.

Please see the 60 min chart below for the best near term options.

SPX - 10 Min 

SPX - 60 Min 

1. Wave 3 of [5] is underway.  I believe wave i of 3 may have completed into the close. Early weakness tomorrow would be considered wave ii of 3 before launching iii of 3 of [5] towards 1440.

2. Wave b of a triangle or flat is wrapping up. If it has a little more to go, 1420 would be a decent target before pulling back. The issue with this option is the fact that the leg up so far off 1386 looks impulsive. What could happen first is a quick little pullback and then one little leg up to turn this into a larger three wave structure to complete wave b.