Monday, May 21, 2012

5/21/12 - EOD Update

At EOD last Friday, I mentioned that it was very possible a bounce would start this week. The market answered that call today so far.

SPX - 5 Min
Here is the 5 min view of the bounce.

Bear Count
Based on the bear count, this is the beginning of wave 4 of [3]. Some possible Fib targets are labeled in the chart above.
Ultra Bull Count
If the ultra bull count is playing out, we should expect a impulsive rally from here. We'll see if the bounce off the lower channel will hold.

Could this bounce just be a backtest of the neckline? If it were to go that high though, the current bear count would be invalidated, so something to keep in mind.
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