Friday, October 3, 2014

10/3/14 - EOD Update

The bulls responded today and though they are not out of the woods yet, they have shown that another leg higher is most likely in the works.

The bears, as posted earlier, may have screwed the pooch on this one. With the push back up through 1966, a three wave corrective is more likely at this point.  The bears also did not defend the neckline to the H/S.

My daily chart also shows that wave iv of the ED most likely is complete and wave v is underway.

One thing I will also keep an eye out for is a wave iv flat. This would mean that the bounce that occurred today, may do so in a three wave fashion before one more leg down to challenge 1900. I won't focus on that just quite yet but wanted to make you all aware of that potential.

I exited my longs from yesterday and will be looking to enter again next week on what would be a wave {ii pullback. It is possible that wave {i may have a little more to go between 1978 (1 min inv H/S target) and 1985.

Also a much larger inverted H/S may also be developing so I'll will be looking for that to happen as well.

Have a great weekend!!

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