Tuesday, June 26, 2012

6/26/12 - EOD Update [9:25 PM Update]

[9:25 PM Update]

I think I posted a chart highlighting a diagonal a few days ago and forgot to follow up with this potential scenario. We know that diagonals are typically retraced 78.6% so something to keep an eye on.

EOD Update

The bears have a chance to turn up the heat as early as tomorrow if the red option is correct on the 5 min below. A double zigzag completing with a wave y ending diagonal could very well have completed wave 2 per the bear count below.

On the flip note, the bulls have chance to fight a little longer and push the market higher towards the 50 day SMA. I'm not convinced of this count but a triple nested 1-2 would be the call after a quick backtest of the blue TL.
5 Min

The head and shoulders is still a threat.

Bollinger Bands
MACD turning down but the market did close slightly above the 20 day SMA.
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