Friday, June 29, 2012

6/29/12 - EOD Update

The bulls certainly followed through with yesterday's EOD reversal. There are still several options on the table by way out counts so it is still hard to say for sure which count is in play near term.

Until the bulls can break 1422, the bear count is still a threat. Now that the month and quarter is over, we shall see what happens next week.

The primary option for the bear count is very close to becoming invalidated. 1363.46 would rule it out.
If 1363.46 is taken out next week, the alternate count turns into a larger complex wxy corrective for wave (2).

The bulls reclaimed several MAs  and EMAs today and broke through the near term descending trendline. There is wide open space to the 4/2-5/1/12 TL above near 1390.

As proposed the other day, a much larger bounce should be expected out of a diagonal and so far this is what may be happening so we need to continue to monitor this.

Wave (y) could very well be in progress or wave b of (x) just completed today, with wave c down to come starting next week.
Daily Bollinger Bands
Weekly Cup and Handle
I posted this one several times now and the cup and handle pattern should be watched here. For those wondering how a follow through higher can be accounted for if the waves are not impulsing up, please see the LT corrective option I have had for some time now.

Long Term Corrective Option

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