7/24/12 - EOD Update

The bears are in full attack mode right now. A very bearish nested 1-2 i-ii down has setup.

The only thing the bulls have going for them right now is a short term (5-30 min) MACD +ve divergence, five waves up off the day's low, a bounce off the May-June TL and a close above the 50 day SMA.

Bear

Note the head and shoulders pattern as well. A test of the June low is a very good possibility.

The alternate for the above is that only wave 1 red has completed and a much steeper wave 2 retrace would begin tomorrow if this nested 1-2 i-ii does not materialize.

If one has been tracking my 10 min chart, it would follow the black option.

 Bull

The best case scenario for the bulls right now is the black count on this chart and that is not long term.