Saturday, June 23, 2012

Weekend Update [6/27/12 - Update]

 [6/27/12 - Update]

This is an update in response to jxsmith's comment below. I'm not sure if double correctives have to consist of a-b-c subwaves only or if  they can also have complex subwaves of their own.

In this case, my previous chart had wave [y] forming a double zigzag (w)-(x)-(y) vs the typical (a)-(b)-(c) subwaves. In the event that the latter should be used, the chart addresses addresses that issue and personally I like this version better.

Weekend Update

Near term, I'm looking for one more little leg down, which would be a nice touch of the 20 day SMA at 1320.
5 Min


The bulls lost the neckline support (1335) of the inverted head and shoulders. We need to see if the bounce is just a backtest of that failed neckline.
50 / 200 Day SMA
The same concept goes with the 50 day SMA here.

Below are the bigger picture views and at the moment the bearish completion of Intermediate (B) may have an advantage over the ultrabullish count below.

However, note the LT Corrective option. I have tracked this one for some time as well but have not updated this since the implications of the direction were the same as the previous bull count.

Now that the original bull count is out, this would be one final explanation for another leg higher in a corrective fashion.

Lets just keep an open mind and see what happens.

Intermediate B

Ultra Bull
LT Corrective Option
This count is still maintaining the channel and MACD is still above the TL.

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