Wednesday, March 12, 2014

3/12/14 - EOD Update

[1:31 PM - 1 Min Update] - Ok. I believe this is how we get waves 1 and 2 up off today's low.

1 Min 
Here's the adjustment to the 5 min chart to correspond with the 1 min view above.

5 Min 

[EOD Update] - Unwound the shorts in the AM because the move lower found support at the 20 day SMA, 1850 level, double talk target and wave (c) =1.618*(a).

We also can't ignore that the wave structure off my wave 1 high does not look impulsive what so ever.

I think the bulls have another leg higher to go to at least 1875 . It is difficult to find an impulse up off the day's low, but we can't ignore the bounce off key levels mentioned above.

The bulls also formed a bullish daily hammer candlestick. It is up to them to follow through tomorrow to confirm the reversal potential.

I give the bulls an edge leading in to tomorrow and positioned for it.

Note on the 5 min chart I have added a green alternate in the event that wave y is not complete.

So short term, lets see a bounce higher tomorrow and then reassess. We still can't ignore on a little longer time frame (daily) that MACD is rolling over (creating a triple -ve divergence) and the McClellan is still diverging.

5 Min 


I'm still watching the 10 year for clues. So far sold down to the 50 day. We'll see if wave d green is coming up (which means stocks go lower) or wave c blue down (stocks go higher)
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