8/7/13 - EOD Update

The market bounced off the 20 day SMA in five waves. The red count option leads the way. There are a few other short term options as well so we'll be mindful of those as the waves play out.

I'm guessing tomorrow should see a wave c of 2 rise to possibly challenge the 1700 level.

This would also form a symmetrical right shoulder (see hourly).

There is a triple -ve daily MACD divergence.

The bears should not get too excited yet though. See the weekly chart below. This is a variant of an extended wave I have posted in the past. Should the H/S play out, it may only be yet another pause before the extension moves higher.

We'll see.

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