Wednesday, July 31, 2013

7/31/13 - EOD Update

The market continues to chop as suspected. I'd still say its up in the air. Though the triangle and the chop may be the seem to be the most logical pattern, we must still be mindful of the blue option and a potential double top here.

Triangles do not always resolve as expected and today the daily MACD signal line crossed down.

The purple option provides other clues as to what else may be forming. A flat would be a good pattern to develop to fool the bears into thinking that the blue count is in full swing.

The way the market closed today makes me think we may see the flat or the beginnings of blue wave iii. Either way, the markets should open red in the AM if this is to be the case.

If not, and it bounces, we certainly can turn to the obvious, a triangle. We'll see.

60 Min 

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